TWSE says financial papers of Asia Plastic Recycle OK
By John Liu ,The China Post
May 3, 2014, 12:02 am TWN
TAIPEI, Taiwan -- According to Taiwan Stock Exchange's (TWSE) preliminary investigation, there were no misrepresentations in Asia Plastic Recycle's (亞塑再生) financial statements, as previously reported by Glaucus Research.
Investigators had been dispatched to Asia Plastic Recycle, a plastic waste recycle company in mainland China, to verify reported discrepancies and inconsistencies, said TWSE president Michael Lin (林火燈) yesterday.
After some preliminary analysis and comparison, however, the TWSE did not find any anomalies in the company's financial statements and TWSE said that the financial statements "basically represented truthful facts."
It is likely that the reports provided by Glaucus Research were not accurate, the TWSE said. If Asia Plastic Recycle's financial statements were indeed truthful, then Glaucus Research may be guilty of spreading rumors, violating Articles 155 and 157 of the Securities and Exchange Act. As Asia Plastic Recycle's share prices have taken a hit, affected investors and institutions have the right to file lawsuits against Glaucus, the TWSE said.
Asia Plastic Recycle already filed litigation against Glaucus last week. Representatives of Glaucus will be summoned for inquiry in court. If found guilty, those implicated in the case may be sentenced to between three and 10 years in prison.
Should Asia Pacific Recycle win the case, it may be compensated by Glaucus for loss incurred. An arrest warrant may also be issued for the chairman of Glaucus if he refuses to show up for inquiry in court.
Asia Pacific Recycle filed the lawsuit in an effort to rescue its reputation, the TWSE said, adding that this has no clear connection with investors' interests. As such, investors are responsible for their own litigation, should they feel victimized by the incident.
Investors may also report the case to their insurers, who may in turn file lawsuits against Glaucus for group compensation, according to TWSE Senior Executive Vice President Chien Lih-chung (簡立忠).