Best World founders should make exit offer to minority shareholders
Delisting the company will allow Dora Hoan and Doreen Tan to ride more of the upside from the group's expansion plans while putting the past in the past
THE word "fraud" was never mentioned in PwC's 27-page summary of its probe into Best World's China dealings, but the findings still raise serious concerns.
Best World's demonstrated control over major customer Changsha Best and marketing agent Vicstar begs the question of whether sales made to these entities in prior years should be classified as inter-company sales in Best World's accounts. PwC's investigations showed they operate more like subsidiaries of Best World than independent entities.
Inter-company transactions have attracted attention in the past because of the roles they have played in corporate scandals. When properly disclosed, they are eliminated in consolidated financial statements. But they can also be used to inflate sales.
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