HONG KONG, July 31, 2020 /PRNewswire/ -- Sino Agro Foods Inc. (OTCMKTS: SIAF), an agricultural holding company, today announced that on June 27, 2020, SIAF entered into a proposed settlement agreement (the "Proposed Settlement Agreement") in the shareholder derivative action previously disclosed in its Form 10-Q for the quarterly period ended March 31, 2019. The Stipulation of Settlement calls for SIAF to adopt certain governance changes, independent shareholder representation on its board, cessation of the use of company shares to collateralize loans, and for SIAF's chairman to transfer certain personally held shares of Tri-way, a SIAF subsidiary, to the plaintiff-shareholders who shall supply independent director candidates to the boards of SIAF and Tri-way. These directors shall serve for 2 years. SIAF itself will not be required to make payment of any kind.
On July 23, 2020, the U.S. district court for the Southern District of New York entered an Order Preliminarily Approving the Proposed Settlement and the Notice of Proposed Settlement in Heng Ren Silk Road Investments LLC, Heng Ren Investments LP, derivatively on behalf of Sino Agro Food Inc. v. Sino Agro Food Inc., Lee Yip Kun Solomon, Tan Poay Teik, Chen Bor Hann, Lim Chang Soh, and Sino Agro Food Inc. (Case No.: 1:19-cv-02680). A final settlement hearing is scheduled for October 13, 2020, at 3:00 p.m., before the Honorable Jesse M. Furman, Thurgood Marshall United States Courthouse, 40 Foley Square, Court Room 1105, New York, NY 10007.
The full Proposed Settlement Agreement and the full Notice of Proposed Settlement of Derivative Action have been filed with the SEC in an Form 8-K filing dated July 30, 2020, available at: https://www.sec.gov/Archives/edgar/data/1488419/000110465920088457/0001104659-20-088457-index.htm. Copies of the notice and proposed settlement are also available on SIAF's website at: http://sinoagrofood.investorroom.com/news-releases?item=258
SOURCE AFN Law PLLC