China Elegance International Fashion's application for a listing on the Stock Exchange of Hong Kong took a twist yesterday as the company moved to clear its name by denying anonymous allegations about manipulation of accounts and behaviour of its directors.
'The directors believe the malicious claims made by the anonymous letters were aimed at sabotaging the listing of the company,' chairman Muwarto Surya said in a public statement.
The statement was made at the request of the stock exchange, which received three anonymous letters making the allegations against the company, Mr Surya and director Gordon Tong Tze-tung.
'The company will take any necessary steps, including appropriate legal action, to defend its name and reputation and to claim damages for all defamatory acts against the group (the company and its subsidiaries),' Mr Surya stated.
The group is principally engaged in the design, manufacture and sale of leather garments, mink coats and cashmere coats in Hong Kong and China.
Somerley, the listing sponsor, said it was satisfied the company was suitable for flotation and that the board of directors, including Mr Surya and Mr Tong, fulfilled the requirements of listing rules regarding their suitability to act as directors in a listed company.