The then external auditors of the SGX-ST listed company, Advance Modules Group Ltd (AMG) had in May 2006 refused to give the accounts of AMG a clean opinion as certain sales contracted by the then CEO in late 2005 were, in the opinion of the external auditors, irregular and unsubstantiated, which later became the focal point of a forensic audit by KPMG leading to the ultimate collapse of AMG. Mr. Yip was appointed a non-executive independent director in November 2007, to replace another independent director who resigned, to facilitate the then board of AMG in pursuing the necessary actions to recover from the CEO the proceeds of the purported sales for the benefit of AMG. Although full recovery was achieved, the external auditors refused to remove its qualified opinion of AMG's accounts for each of years 2005, 2006 and 2007, resulting in AMG's suspension from trading in July 2008. AMG's subsequent proposal for the resumption of trading was rejected and an extension of time was not granted by the SGX-ST. Accordingly, AMG was delisted in August 2009 and Mr. Yip resigned from the board during the same period. AMG proceeded with the creditors' voluntary liquidation in November 2009 in the absence of a reasonable exit alternative for its shareholders.
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