in china milk case, if they cannot pay off the bondholders, there is a high risk they may have overstated their cash or even committed fraud, I am not sure whether the external auditors involved in this..anyway, i think SGX is the worst as they keep on listing many lousy s-chips without seriously reviewing their financial position and potential of fraud..china milk is not the first s-chips to default on loan, did SGX do a review on the rest of the high risk companies?I think SGX prefers to let the company to wind up after cheating all the money of innocence investors like us..
grandmaster89 ( Date: 16-Mar-2010 20:01) Posted:
Nothing lor. There is no such thing as capital guaranteed. You took risk to buy the company so now pay the price. External auditors don't vet through every single transaction nor do they provide complete assurance. They merely express an opinion to prevent any legal challenges if they are wrong. It is not SGX job to vet through the finances of the 700 companies listed here.
beruangface ( Date: 15-Mar-2010 22:57) Posted:
anything shareholders can do here? securities class action? sue the external auditors? sgx ? what's their role in protecting shareholders?
Nothing lor. There is no such thing as capital guaranteed. You took risk to buy the company so now pay the price. External auditors don't vet through every single transaction nor do they provide complete assurance. They merely express an opinion to prevent any legal challenges if they are wrong. It is not SGX job to vet through the finances of the 700 companies listed here.
beruangface ( Date: 15-Mar-2010 22:57) Posted:
anything shareholders can do here? securities class action? sue the external auditors? sgx ? what's their role in protecting shareholders?
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