Alliance saga
THE SINGAPOREAN stockholders of Alliance Select Foods International, Hedy Chua and Albert Hong Hin Kay, lament being “marginalized” following the entry of a new investor group called Strongoak Inc., whose ownership these investors linked to banker Frederick Dy.
Chua, the lone representative from the foreign group to get re-elected to the Alliance board during the last stockholders meeting, also cried foul over losing her seat in the executive and audit committees, leaving her only with what was described as a “meaningless post” in the nominations committee that meets once a year to consider candidates for the next shareholder meeting.
Chua was likewise “pushed off” all her seats on the boards of Alliance’s subsidiaries on top of criminal charges filed against them, the Singaporeans said.
In a strongly worded statement Thursday, the Singaporeans also described it a “solid mystery” why Strongoak had been allowed to vote to the full extent of its investment in Alliance even if only 10 percent of its investment had come in (the rest was in escrow until such time that the shares are listed on the local stock exchange).
From these Singaporeans’ perspective, Strongoak had “not followed the cardinal rule of diversification which makes their actions seem highly inconsistent with that of a passive or even just a neutral investor,” suggesting that this new local group had been brought onboard precisely to be a “strategic ally” of the controlling Dee family, whom these foreign investors have accused of “mismanaging” Alliance.
Asked about his side on the new issues raised by the Singaporean, Alliance chief executive officer Jonathan Dee denied that Dy—who chairs Security Bank—is connected with Strongoak.
On Chua’s “removal,” Dee said she was “not removed” but was “just not elected.” He explained: “It was by nomination . She was nominated and voted to the nominations committee. With regards to subsidiaries, it is prerogative of board to appoint representatives to board of various subsidiaries.”
On Strongoak’s voting rights, Dee said: “The law is clear. Strongoak is a shareholder and has subscribed to all the shares. They are listed as shareholders in our stock transfer books thus [to be] able to vote is their right. In fact, Singaporeans did not object to that in the shareholders meeting.” Doris C. Dumlao
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