What records must Changsha Best and agents hand over?

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Changsha Best and Agents Must Submit Accounting and Corporate Records to SGX RegCo

Changsha Best and other import agents are required to submit their accounting and corporate records, along with any other documents containing financial information, to SGX RegCo. This directive stems from serious concerns raised by the Singapore Exchange regarding the veracity of Best World International's sales in China and whether these were conducted on normal commercial terms. The order follows Best World's confirmation of a familial relationship between its chief executive officer and managing director, Dora Hoan, and the owner of Changsha Best, its main franchisee in China.
Financial and Corporate Documentation Mandated

SGX RegCo has explicitly ordered Changsha Best, along with other import agents associated with Best World International, to provide all accounting and corporate records. This comprehensive request aims to allow the regulatory body to scrutinise the financial dealings and operational structures of the entities involved in Best World's China distribution network. The scope of the demand encompasses any documentation that sheds light on the financial aspects of their business.
Independent Legal Opinion on Franchise Model

Beyond the handover of documents, Best World International is also mandated to secure an independent legal opinion. This opinion must specifically address the legality of the group's sales and distribution business as it operates under the current franchise model. This requirement highlights regulatory scrutiny into the fundamental structure of Best World's business in China, which was established last year, transitioning from a previous export model.
Concerns Over Commercial Terms and Sales Veracity

The SGX's directive was issued after Best World disclosed that Dora Hoan, its CEO and managing director, is the sister-in-law of Koh Kim Chuan, the owner and sole shareholder of Changsha Best. This revelation has prompted significant concern from SGX, which stated that the relationship raises serious questions about the truthfulness of the company's reported sales figures in China. The regulator is investigating whether these sales were conducted under standard, arm's-length commercial conditions.
Unusually Tough Measures Amidst Allegations

The actions taken by the SGX against Best World International are described as unusually tough, reflecting the gravity of the situation. The company has been fending off allegations of running fraudulent schemes, and its shares have been suspended from trading since the previous Thursday. The directive to hand over sensitive financial and corporate records, coupled with the requirement for a legal opinion on the franchise model, underscores the heightened level of regulatory oversight.

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