Former Midas CEO charged for failing to use reasonable diligence to discharge director duties

SINGAPORE: The former CEO of railway parts maker Midas Holdings was charged on Thursday (Feb 10) for allegedly failing to use reasonable diligence in the discharge of his duties as a director.

Patrick Chew Hwa Kwang is said to have failed to exercise reasonable supervision over the financial affairs of the Midas’ subsidiaries – Jilin Midas Aluminium Industries and Luoyang Midas Aluminium Industries, according to a news release by the Singapore Police Force (SPF).

He had allegedly ceded control of his legal representative stamps for the two subsidiaries to enter into loans or stand as loan guarantors in the name of the two firms, said SPF.

The value of the loans and guarantees, which were entered into between 2015 and 2017, amounted to 159.5 million yuan (S$33.7 million) and 264.5 million yuan. 

Midas announced the discovery of those loans and guarantees in February 2018.

For this offence under the Companies Act, Chew faces up to 12 months’ jail or a fine of up to S$5,000.