DAKA DESIGNS

LIMITED –
DESIGNERS OF A
FRAUD
Adzkia Muftia – Aryo Chandra Hilali – Zatalini
Marsal
 Summary Case
30 Sept
Founded in July 2004, 2004,
1993 by Pat filed an IPO issued a
Y. Mah on SGX profit
warning

31 March
14 Nov 2005, 11 Oct 2005,
reported financial 2005,
reported loss performance didn’t repayment
of HK$38.8 meet market issues with
million expectations
DML
 Summary Case (2)
22 May 2006,
20 Nov 2005, a 16 Jan 2006,
appointed the
special audit to Daka’s trading
consultancy firm
investigate would be halted
A&M Asia to act
Daka’s financial because failing
as interim
affairs to cooperate
managers

25 May 2006, Mah,

September 2009, Chow, Kevin Leung
The Hong Kong ICAC June 2006, and Rose Chow
prosecuted the top special audit decided to
three former senior report released relinquish their
executives managerial
positions
QUESTIONS
 #1
Did the directors breach any laws
pertaining to directors’ duties?
 Establish and
implement
basic objectives
and broad
policies of the
company Elect officers of
the company,
Establish and advise,
perpetuate a approve,
sound board of supervise and
directors review the
actions and
performance

Role and
Function
by the
Maintain, revise Acquire,
and enforce the board of dispose of,
memorandum
and articles of
directors charge and
safeguard the
association of assets of the
the company company

Source by : Approve
Directors’ Duties & Responsibilities Delegate important or
(Singapore) special powers
to others on
major financial
matters and
https://www.gibsondunn.com/wp-conte matters ensure that
nt/uploads/documents/publications/D requiring board
approval
proper reports
are given to the
irectors-Duties-and-Responsibilitie shareholders
s-in-Singapore08-2015.pdf
Yes. The directors breach any
laws pertaining to directors’
duties. 1.Raymond Chow (CEO) mempersulit team audit
Beberap
untuk mendapatkan informasi keuangan dan
a personal perusahaan
contoh
Saat dilakukan special audit, keempat direksi
buktiny yang menempati posisi penting justru
a. melepaskan posisi manajerialnya dan mengambil
cuti
Ketiga senior eksekutif melakukan konspirasi
untuk menipu SGX dan memberikan informasi
yang tidak sesuai kepada investor
 #2
Are the prospectus disclosures adequate for
investors? If not, how can they be improved?
No. The prospectus disclosures is
not adequate for investors.
Karena Deka tidak menyebutkan atau melaporkan
beberapa informasi bahkan memberikan informasi yg
tidak konsisten antara rencana dan realisasinya didalam
prospektus tersebut
Untuk improvement, mereka bisa menggunakan referensi
prinsip 5 dari OECD Corporate Governance, yaitu
Disclosure and Transparency

Pembuatan Prospektus seharusnya menyampaikan

informasi :
- The financial and operating results of the company
- Related party transactions
 #3
In this case, divergence of control and cash flow rights occurs
because the majority shareholders were able to exercise excess
control than their shareholdings. Does this divergence between
control and cash flow rights of the majority shareholders result in
lower protection for minority shareholders? If that is the case, how
can we resolve it?
Yes. The divergence between control
and cash flow rights of the majority
shareholders result in lower
protection for minority shareholders
Hal ini membuat pemegang saham mayoritas
memiliki kontrol yang tidak terbatas dan dapat
mengintimidasi pemegang saham minoritas

Perusahaan dapat menyelesaikan masalah ini

dengan cara menerapkan Good Corporate
Governance sesuai dengan framework dan
peraturan yang berlaku baik regionally ataupun
globally
 #4
Do you think there exists a conflict of
interest between the CEO’s position as
management of the company and his
position on the Board?
Not specifically mentioned, the real
example of conflict of interest act done
by CEO in this case, but ….
 #5
How might a cross-border listing contribute to the
reduction of investor protection? Are Singapore’s
corporate governance rules geared for fraud perpetrated
across borders? What can be done to mitigate this
problem?