Ethics & Governance Issues of Wing Tai Holdings

2255 WordsAug 3, 200810 Pages
A) Company Information Wing Tai Holdings Limited (Wing Tai) was incorporated in Singapore on 9 August 1963 and listed on the Singapore Exchange on 21 February 1989. Wing Tai started in Hong Kong as a garment manufacturer in the 1950’s. It later expanded its operations to Singapore and Malaysia in the early 1960’s and entered the property market in Singapore in 1978. Since then, Wing Tai became a major property player with a niche reputation for delivering premium developments with innovative design, finishes and workmanship due to its dedicated attention to detail and quality. Wing Tai together with its regional business entities, USI Holdings Limited (Hong Kong) and DNP Holdings Bhd (Malaysia) formed the Wing Tai Asia Group. Figure 1…show more content…
The separation of roles ensures a balance of power and authority, such that no one individual represents a considerable concentration of power. Similar family-owned businesses like EYS, and Tangs had appointed different Chairman and CEO and their companies are still profiting and doing well. 4. Lead Independent Director As the roles of the Managing director and Chairman are being held by the same person (Mr Cheng Wai Keung), it is important for the group to have a lead independent director to ensure an appropriate balance of power, increased accountability and greater capacity of the Board for independent decision-making. 5. Roles and responsibilities of the Chairman and Managing director Being that Mr Cheng Wai Keung assumes both the Chairman and Managing Director’s roles, Wing Tai should specify clearly the different roles and responsibilities expected of the position in the annual report. By reporting in the annual report, they will minimize any confusion or queries that shareholders have. Companies like SingTel, Tangs, Singapore Airlines (SIA), and Banyan Tree had state out clearly in their annual reports the roles and responsibilities of their CEO and Chairman. 6. Disclosure of process for selection and appointment of Directors To increase their corporate transparency and as required by Code of Corporate Governance, Wing Tai has to disclose their process for selection and

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