Avarga (formerly: UPP Holdings)

[weijian]

Avarga proposed to change auditor and convened an EGM on 30 Sep 2022.

https://links.sgx.com/1.0.0/corporate-an...9890173e9f

I have questions to ask any experienced VBs here.

1) Is it normal to change audit in midst of financial year?
2) Does it warrant a red flag?

Hi setan,

The decision to continue with the existing auditor was made (and then voted upon) barely <6 months ago. So what has reasonably changed within this short timeframe? The existing auditor was appointed 11 years ago. Did Tong Junior suddenly had an epiphany?

It takes money to hold an EGM to override the resolution that was voted and approved. So I reckon the epiphany and the "good governance it wants to uphold" must be worth the money spent.

I do not have definition answers to both questions, as I suspect the answers are probabilistic in nature (just like how investing is).

But nonetheless, I do see "similarities" in current action to the previous decision reversals for quarterly reporting and dividend policy.