China Sky must appoint new CEO: SGX

A Special Auditor must also be named, said mediator David Gerald.

David Gerald, CEO of the Securities Investors Association (Singapore), is mediating between China Sky and Singapore Exchange for the former to comply with SGX requirements. Meetings with Mr Er Kwong Wah, former Independent Director, and Mr Huang Zhong Xuan, the majority shareholder, have been ongoing.

Matters may soon be finalised, and will be followed by a fuller announcement on the progress. "To-date, the discussions have been quite positive," said Gerald.

Here's what David Gerald has to say on the issue:

My objective for requesting for discussions with Mr Huang is to break the impass and to require the Company to comply with the Singapore Exchange requirements. This is in the interest of all shareholders.

I have asked Mr Er to emphasize to Mr Huang and the other Executive Directors, the importance in complying with the Singapore Exchange requirements which are as follows:

1. Appointment of the Special Auditor
2. Reconstruction of the Board
3. Appointment of new CEO
4. Appointment of new CFO
5. Appointment of a liaison officer to communicate with Singapore Exchange
6. Appointment of Company Secretary
7. Holding of AGM

The above requirements have been intimated to Mr Huang and the Executive Directors and I have impressed upon Mr Huang and the Executive Directors the importance of the Board complying with the requirements as soon as possible. Minority shareholders of China Sky will have to await Company's announcement in due course.