The Stock Exchange of Singapore (SES) has reprimanded directors of Hotel Properties for certain property dealings, just days after the company celebrated a massive windfall from its stake in newly listed restaurant group Planet Hollywood. The exchange has criticised the board for delays in informing the exchange and shareholders of details of discounts given to directors and other connected parties on luxury flats being built in Singapore's prime residential areas. The exchange also has issued new guidelines to all companies, stressing that such sales must be in the best interests of the listed issuer and its minority shareholders. The flats involved are the Scotts 28 condominium and the Nassim Jade project. Huge demand is expected for both projects, and discounts of between 5 and 11 per cent could result in substantial paper gains, estimated by property analysts at between S$230,000 (about HK$1.26 million) and $1 million. Among those who received discounts were Lee Suan Yew, a non-executive director; members of his family; Mary Fu, wife of chairman Peter Fu and mother-in-law of Ong Beng Seng, the driving force behind the group; and other members of the Fu family. Former directors David Ban and Freddy Lee were also on the list. The exchange criticised the directors for failing to respond satisfactorily to its requests for information, and for an 11-month delay in obtaining shareholders approval for the sales to Mr Lee and Mrs Fu. The exchange said yesterday some of the units had been sold at discounts which were generally higher than the discounts given to unrelated buyers. 'Although Hotel Properties did not violate any SES rules, the exchange would like to remind directors of listed companies that, in marketing property projects, they have a duty to obtain the best price so as to maximise the returns to shareholders,' the exchange said.
