Sino-Forest Shareholder Calls For Board Shake Up: report
Richard Chandler Corp, the largest shareholder in Sino-Forest (TRE.TO), called on Thursday for a board shake-up, saying directors are taking too long to clear the China-focused forestry company of fraud allegations, Reuters reported.
It said RCC, a Singapore-based investment firm that owns nearly 20% of Sino through its Mandolin Fund, slammed the board on Wednesday for its decision to trigger a debt default and called on Sino to reconsider.
Separately, Davis Advisors, another major shareholder, reportedly released an open letter asking the Sino board to reconsider its actions. "We are unable to reconcile your actions with your fiduciary duty to represent the interests of shareholders," the letter.
Davis said it owns more than 17% of the company's outstanding shares on behalf of its clients, making it Sino's second largest shareholder.
Sino-Forest, until a few months ago the largest listed forestry company on the Toronto Stock Exchange, has been reeling since June, when short-seller Carson Block and his firm Muddy Waters accused it of exaggerating the extent of its Chinese assets.
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