THE stock exchange's recent censure of former directors of Double Kingdom Holdings was reasonable, says the company's chairman. The exchange issued a public censure this month against six of the cordless telephone manufacturer's former directors - of whom three are still on the board - for causing, or failing to take steps to avoid, the creation of a false market on the first day's trading of the company's shares in November 1991. Ninety-six per cent of the turnover was linked to an individual associated with its directors. ''What the stock exchange said was reasonable,'' said Clement Mak Shiutong, who became chairman of the company this year after its acquisition by China Treasure Holdings. ''But that was a problem with the former board of directors and does not reflect on the new leaders. When we bought the company we knew nothing about the matter,'' he said. He said he did not think the group's image would be affected by the public censure partly because those censured were former directors. However, three of the censured directors are still on the board, including former chairman and managing director Billy Leung Chung-hung. All have undertaken to ensure strict compliance to the rules of the exchange in future. ''Those remaining are talents in management and administration,'' Mr Mak said. ''In the interests of the company's minority shareholders, we can't dismiss people just because they've been censured by the stock exchange.'' He also said the group's image would not suffer from the censure because of its name change to China Treasure Telecom Holdings, approved at an extraordinary shareholders' meeting yesterday. He expected a turnaround this year in the group's turnover and profit and loss accounts. In 1992, write-offs and bad debts drove net profits down to $6.72 million - barely a sixth of the $44 million forecast in the company's listing document, and its lowest earnings since 1988. In the six months to June 30 last year, the company slipped into the red with a loss of $11.4 million, in spite of a substantial increase in turnover. ''We wouldn't have bought it if we hadn't believed the company's management would be able to turn it around,'' Mr Mak said. He said the acquisition did not represent a back-door listing and the injection of the parent company's partial Sun City property assets was aimed at boosting Double Kingdom's asset value. Meanwhile, the company has secured either co-operative agreements, joint-venture projects or acquisition deals with China's Ministry of Posts and Telecommunications in northern China, to be announced next week. Co-operation with the ministry will mainly be in the trading, production and joint operation of trunk radio telephone systems, which Mr Mak said were popular in China.