The former Singapore civil servant says he’s lost almost S$50,000 ($36,600) in the implosion of Noble Group Ltd., the commodity trading giant. He also says shareholders like him have been let down by regulators whose job it is to protect them from the sort of crisis that’s brought the company to the brink.
Yet, the 71-year-old says he still plans to vote in favor of a debt-for-equity restructuring at a shareholder meeting in Singapore on Monday that will hand control to senior creditors, diluting existing stockholders. He sees no other option.
“I was cheated of my hard-earned savings,” said Tay, who still owns a small amount of shares. “How can a giant company collapse?” he said in an interview earlier this month in the run-up to the shareholder vote, adding: “What message does that send to the world about Singapore’s reputation?”
“The SGX is a policeman without a gun,” said Tay. “Layman investors like us only have access to on-the-surface information, such as company releases or news reports.”
The SGX defended itself by setting out a summary of the actions it’s taken over the past three years as Noble suffered blow after blow. The tally includes frequent contact with the company, queries for more detail on its results and its demand that Noble appoint an independent financial adviser to assess the debt-for-equity plan that Tay and others are about to vote on.
“Questions ought to be asked about whether the SGX board has adequately prioritized investor protection,” said Mak Yuen Teen, an associate professor of accounting who specializes in corporate governance at the National University of Singapore Business School. There are also questions on whether the board has given sufficient resources to SGX RegCo, he says, referring to the arm of the SGX that discharges its regulatory functions.
