Nam Lee Metal Industry should explain the reasons for the dismissal of the chairman to restore shareholder confidence | Lianhe Zaobao

"United we stand, divided we fall," the founders of Nam Lee Pressed Metal Industries, Yang Junzhen, Yang Junsheng, and Yang Junmiao, have upheld the belief of working together to create a better future over the years, leading the company through economic turmoil and successfully moving towards listing. However, just as the second generation was vigorously promoting the company's development, signs of family discord emerged within this family business, and the process by which the elders resolved conflicts left some shareholders confused. Recently, the second-generation leader, Yang Liyuan (phonetic: Yong Li Yuen), was removed from her position as chairperson of the board for unknown reasons, raising questions about shareholders' rights to information. Nam Lee was founded in 1975 by the three brothers Yang Junzhen, Yang Junsheng, and Yang Junmiao. The brothers learned the business from their father from a young age, selling metal daily necessities such as buckets and trash cans. In the 1960s and 1970s, the government built a large number of public housing units, requiring many steel clothes drying racks, door frames, wrought iron gates, and stainless steel trash cans, and Nam Lee won contracts from the Housing and Development Board, becoming one of the material suppliers. Under the cautious management of the three brothers, Nam Lee developed rapidly and was listed on the Singapore Stock Exchange in 1999. According to a statement released by the company at the end of last year, the three brothers each held about 19% of the shares. Eldest brother Yang Junzhen served as the chairman and executive director of the board since 1975 and stepped down in 2020, with his daughter Yang Liyuan taking over. Yang Junsheng's son, Yang Hanqiang (phonetic: Eric Yong Han Keong), and Yang Junmiao's son, Yang Hanlin (phonetic: Adrian Yong Han Lim), also joined the company several years ago, serving as managing director and executive director, respectively. With the family business passing to the second generation, performance has improved. For the fiscal year 2025, net profit rose by 102.7% to SGD 24.81 million, and revenue increased by 15.7% to SGD 200.86 million, with the company announcing a dividend of 3 cents per share. The company achieved its best performance ever, and its stock price saw explosive growth, nearly doubling in the past year. However, Yang Liyuan was suddenly dismissed at a special shareholders' meeting held last Friday (January 9), with the reason for her removal unclear, and the timing coinciding with Yang Hanqiang being questioned by the Corrupt Practices Investigation Bureau (CPIB), raising concerns among investors about the company's future. Yang Hanqiang was questioned by the CPIB last October due to a report concerning the company, and the authorities have informed him that no further action will be taken against him. This investigation appears to be related to a report received by the company in the fiscal year 2024, and the investigation results showed no findings that warranted further investigation. However, the investigation revealed some procedural lapses and operational control weaknesses, and the company has implemented relevant remedial measures Three weeks after the news of Yang Hanqiang's investigation was announced, Yang Liyuan's two uncles applied to convene an extraordinary general meeting to demand Yang Liyuan's resignation. The problem is that they did not publicly disclose the reasons for the dismissal. Although other shareholders inquired about the reasons for the dismissal before the extraordinary meeting and whether it was related to the whistleblower letter and Yang Hanqiang's investigation, the company only stated, "The shareholders applying for the extraordinary meeting did not provide reasons." Shareholders also questioned why, if it was related to the investigation, the focus was on Yang Liyuan rather than the investigated Yang Hanqiang. In response, the company stated that it was unclear whether it was related to the whistleblower incident. Dismissing the chairman of a listed company's board is a significant matter, and investors need to know the reasons to make informed voting decisions. If the chairman is negligent or has made mistakes that necessitate such extreme dismissal measures, rather than just penalties like salary reductions, the company should provide shareholders with an explanation. Company is Unaware of Investors' Concerns However, regarding investors' concerns, the company is unaware. In today's emphasis on corporate governance, accountability, and transparency, the company's response is hard to believe. The dismissal resolution was passed with 100,301,000 votes, accounting for 67.56% of the total votes. Yang Junsheng and Yang Junmiao collectively hold about 95.58 million shares, making it not difficult to push the resolution. It is understood that some shareholders will again raise inquiries about the reasons for the dismissal at the annual general meeting to be held on January 29. The chairman's position is currently held by independent non-executive director Yang Nanfeng (transliteration: Yeoh Lam Hock), and the selection of a new chairman has not yet been announced. The dismissal result has become a fact, and it is believed that shareholders are now more concerned about whether the company can maintain last year's strong momentum under new leadership. The company should address shareholders' concerns as soon as possible to restore investor confidence