Canada’s top securities regulator on Friday accused a Chinese forestry company of fraudulently inflating its revenue and exaggerating the extent of its timber holdings.
The regulator suspended trading for 15 days in shares of the company, Sino-Forest, which trades on the Toronto Stock Exchange. But its directive came amid some confusion. The Ontario Securities Commission at first took the very unusual step of ordering five directors and officers of Sino-Forest to resign — only to rescind that demand just hours later.
Wendy Dey, a spokeswoman for the regulator, said that the order against the executives, which included Allen T. Y. Chan, the chairman and chief executive of Sino-Forest, was reversed after the commission determined that it could not force their resignations without holding a hearing.
Chris Nicholls, a professor specializing in securities law at the University of Western Ontario, said that he could not recall the commission previously trying to remove corporate officials without a hearing. “But that’s probably because they can’t do it,” he added. “Clearly there was some mistake.”
About Me
- Marc A. Ross
- Washington, DC, United States
- Marc has an extensive background in business development for companies as well as directing the advocacy operations, communications efforts, fundraising programs and public affairs for nonprofits, corporations and political campaigns for the highest offices in the United States and the United Kingdom. Marc is available for consulting, workshops, panels, interviews, training sessions, advice, commentary and speaking on all things Advocacy 2.0. Marc can be reached via email by sending a note to marc (at) 2ndsix.com or by twitter at @microadvocacy.
