Largest shareholder calls for Sino-Forest management change

Billionaire Richard Chandler, the largest shareholder in Chinese timber company Sino-Forest (TRE.TSE), said the company needs to appoint a new CEO and directors, Bloomberg reported. Chandler said there were “serious concerns” about the ability of the board to fulfill its obligations. “Any actions by directors, such as the non-payment of bonds, which compromises the going concern capability of Sino-Forest will potentially lead to shareholder actions for negligence,” Chandler said in a written statement. CEO Judson Martin previously stated Sino-Forest wouldn’t make an interest payment due December 15 and was considering options including going private. Chandler expressed further concern about the time and money spent on the board’s investigation into alleged fraud committed by the company, weak internal controls and the unexpected delay in publishing third-quarter results. Davis Selected Advisors, the second-largest shareholder, also published a statement calling for the company to reconsider its decision to default on the US$9.78 million interest payment.