SGX RegCo has publicly reprimanded directors of BlackGold Natural Resources for flouting listing rules, where among others, for failing to put in place effective internal controls and for not making timely disclosures.
The directors named are executive director and CEO Andreas Rinaldi, independent directors Lim Chee San and Bangun Madong Parulian Samosir, and also CFO Suherman Budiono.
According to SGX RegCo, BlackGold Natural Resources failed to update investors on material developments involving its sole operating business, a coal mine in Indonesia.
Specifically, an agreement with its mining contractor was terminated at the subsidiary level without updating the board of BlackGold Natural Resources.
The company's mining license has also expired and the series of material developments were not made known publicly until weeks later.
Trading of BlackGold Natural Resoures shares has been suspended since June 15 2023 and the company placed under judicial management since Jan 26 2024.
See also: SEC fines Blackstone, KKR, Apollo, others in texting crackdown
"The board asserted that the termination was an isolated lapse by a rogue employee at the subsidiary, rather than a reflection of broader governance issues," reads the statement by SGX RegCo on March 20.
In response, SGX RegCo points out that all directors are to "exhibit a minimum level of care, skill and diligence in the discharge of their fiduciary duties."
They are to "devote sufficient time and attention to the affairs of the issuer, including implementing adequate supervisory and monitoring mechanisms over the operations and affairs of its principal subsidiaries."
See also: SGX RegCo issues 'trade with caution' warning on karaoke chain 9R
SGX RegCo acknowledges that the comprehensiveness of documentation may depend on the size of an issuer’s business operations, their boards are still obliged to take reasonable steps to establish adequate procedures, systems and controls.
In the case of BlackGold Natural Resources, "there was no substantive evidence that the company and the board had done so," says SGX RegCo.
