Mary Chia admits disclosure lapses over CPF arrears at four subsidiaries after SGX queries
Firm attributes omission to shortcomings in its internal information consolidation and disclosure assessment processes
Singapore-based beauty and wellness firm Mary Chia Holdings admitted to failing to disclose CPF arrears and court proceedings for four of its five subsidiaries in a September announcement, despite its CEO's prior knowledge. This omission came to light after Singapore Exchange Regulation (SGX RegCo) inquired about the lack of disclosure.
The company attributed the mistake to shortcomings in its internal processes for consolidating and assessing information across various departments. The disclosure assessment had initially focused on one subsidiary, Mary Chia Beauty & Slimming Specialist, whose CPF arrears and court appearances were the subject of the initial query.
The five subsidiaries in question were Masego, Organica International Holdings, Spa Menu, and Urban Homme Face & Body Studio for Men. The revised aggregate CPF outstanding contributions across the five subsidiaries was reduced to S$103,727 as of October 9, down from the previously reported S$153,000. The CFO and human resources manager were aware of the court notices and attended an interview with the CPF Board on July 22.
The independent directors became aware of the CPF discrepancies during an internal audit meeting on May 25. However, they were not informed about the court notices and related proceedings. The company disclosed nine separate notices to attend court across the five subsidiaries. The CPF Board consolidated the court mentions and the cases were heard together on September 10 and October 8, with the court proceedings adjourned to November 12.
The overdue contributions ranged from S$5,025 to S$52,266, excluding late-payment interest and composition sums. Mary Chia Beauty & Slimming Specialist owed the largest amount, while Spa Menu owed the least.
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