THE directors of Sincere Company have been asked by the Stock Exchange of Hong Kong to explain the size of their remuneration for the last fiscal year.
''It is very appropriate and timely for us to look at this whole area,'' said head of the listing department, Herbert Hui Ho-ming.
News that Sincere's directors paid themselves $115 million for the fiscal year 1992/1993 on a company net profit of $46.66 million, caused a furore last week.
The company enjoyed an attributable profit of $1.12 billion the previous year, thanks, in part, to the sale of the Sincere Building in Sheung Wan.
Mr Hui said there were two issues which needed to be explored.
He said: ''The first was dealt with by the working group on financial disclosure which submitted its report last week, and we have recently set up the working group on corporate governance which will deal with the possible control of remunerations.
''However the work of the new group is in its early stages. There is nothing imminent.'' The issue of directors remuneration has come under scrutiny from other groups, including the Securities and Futures Commission (SFC) and the Hong Kong Society of Accountants (HKSA).