EuroSports Global explains reasons for keeping Melvin Goh as executive chairman and CEO

[SINGAPORE] EuroSports Global said the board’s nominating committee has independently assessed, including considering the important role and involvement of executive chairman and chief executive Melvin Goh, before concluding that he should not step down.

The Catalist-listed luxury automobile distributor’s board was responding to queries from the Singapore Exchange (SGX) on Wednesday (Aug 6) over its decision not to show Goh the door after the 68-year-old was charged on Tuesday.

Goh was accused of engaging in conduct likely to create a false or misleading appearance of active trading in EuroSports Global’s shares, instigating two persons to use deception in the trading of the company’s shares, as well as failing to inform EuroSports Global about the change in his shareholding in the company.

EuroSports Global’s board said in a regulatory statement on Tuesday that it had decided that Goh was “suitable” to continue his current roles, after the nominating committee reassessed the situation and listened to his explanations. The committee concluded that the matter did not give rise to any defect of character or call into question Goh’s integrity.

In its responses on Wednesday, the board reiterated that Goh has not been proven guilty. It added that he plays a crucial role in the company, citing his involvement in the recent sale of treasury shares to strengthen the company’s financial position.

The board also did not implement any measures to safeguard against any risk associated with Goh’s continued involvement in his executive roles, since the alleged offences do not relate to the operations of the company, nor were they committed against it.

However, the board decided that the company should initiate its succession plan earlier. .

RHT Capital, the sponsor, told SGX that it has also assessed the suitability of Goh in his current roles as well as noted the nominating committee’s considerations. Goh, it pointed out, has not been convicted. Hence, there is nothing to suggest that the chairman and CEO should be removed.

EuroSports Global shares plunged 11.5 per cent or S$0.011 to S$0.085 at Wednesday’s close.