THE Institute of Chartered Secretaries has stepped into the Sincere Co pay scandal, calling for the company directors' fitness to lead a listed company in Hong Kong to be examined.
The professional body suggests that under Hong Kong law the controversial payment to directors of a total $115 million may constitute a sham transaction and be prejudicial to the interests of the shareholders.
In a strongly worded editorial article to be published in the September issue of its magazine Company Secretary, the organisation suggests shareholders have the right to ask the courts to revoke the payments.
Sincere's annual report last week revealed that directors had paid themselves $115 million, including fees, salaries, bonuses and other perks, in the year to February 28.
That was 2.5 times the company's net profit of $46.66 million.
The institute's article on the payment says: ''News of the $115 million emoluments paid to the directors of the Sincere group is beyond bold - it is obscene.