SINGAPORE – Digital content production house Vividthree Holdings in an announcement on March 24 noted the arrest of its board chairman and independent director Ho Choon Hou by the Commercial Affairs Department (CAD) in relation to alleged breaches-of-disclosure obligations by private cord blood bank Cordlife Group.
Dr Ho was arrested by the CAD in relation to an offence under the Securities and Futures Act. He has been released on bail and has surrendered his passport.
The board of Catalist-listed Vividthree said the investigations by the CAD do not involve the group, and do not affect its business and operations.
The announcement also said that the board and nominating committee have assessed the circumstances surrounding the matter and “are of the opinion that Dr Ho is still able to fulfil his duties” to Vividthree as an independent director, as the investigations have not compromised his professional duties to the company.
It added that as far as the board and nominating committee are aware, Dr Ho has not been charged with any offence despite being under investigation, and he has “conducted himself in an independent and professional manner, and has provided constructive and valuable input to the board” since his appointment in 2018.
Vividthree said it will continue to monitor the situation, and will announce further material information as necessary.’
Dr Ho is also an independent director at Advanced Holdings, a Catalist-listed engineering company, since 2013.
Advanced posted an announcement on Dr Ho’s arrest on March 22, stating that the investigations do not involve the company.
It added that prior to the investigations, Dr Ho had notified the board that he intended to step down from his role as independent director with effect from April 26.
Given that Dr Ho has not been charged and his impending cessation as independent director, the board believes Dr Ho is able to fulfil his duties.
Advanced has also received an undertaking from Dr Ho that he would inform the board of subsequent developments arising from the investigations.
Dr Ho is the acting chairman of Cordlife’s board, as well as an independent director.
The troubled cord blood bank on March 22 said he was one of the four directors arrested and released on bail, alongside the group’s former group chief executive Tan Poh Lan.
Dr Ho, who has been a Cordlife director since 2011 and was most recently its vice-chair, was made acting chairman after Cordlife’s then chair Joseph Wong stepped down.
Shares of Vividthree ended flat on March 22 at 2.4 cents, before its announcement, while Advanced’s shares closed up 1.7 per cent at 12.3 cents.