The former Chief Executive Officer (“CEO”) of Mainboard-listed Midas Holdings Ltd (“Midas”), Chew Hwa Kwang, Patrick (“Patrick Chew”), was charged today for an offence under the Companies Act, Chapter 50 (“CA”) for allegedly failing to use reasonable diligence in the discharge of his duties as a director of Midas.
The charge relates to Patrick Chew’s failure to exercise reasonable supervision over the financial affairs of Midas’ subsidiaries, namely Jilin Midas Aluminium Industries Co. Ltd (“JMA”) and Luoyang Midas Aluminium Industries Co. Ltd (“LYMA”). Patrick Chew had allegedly ceded control of his legal representative stamps for JMA and LYMA, which were then used to enter into loans or stand as loan guarantors in the name of the two subsidiaries. The value of these loans and guarantees amounted to RMB 159.5 million and RMB 264.5 million respectively (approximately SGD 32.7 million and 54.3 million).
Midas subsequently announced their discovery of these loans and guarantees, entered into between 2015 and 2017, in February 2018.
If convicted for an offence under Section 157(1) of the CA, per Section 157(3) of the CA, Patrick Chew faces imprisonment for a term which may extend to a maximum of 12 months, or a fine of up to $5,000.
SINGAPORE POLICE FORCE
10 February 2022 @ 10:45 AM