Fu Yu Corporation believes lawsuit-battered CEO still fit to lead

Mr Ho Kang Peng remains at helm.

In a release, Fu Yu Corporation said it has reviewed the findings made by the Court against Mr Ho and is of the view that the judgment will not affect or restrict Mr Ho in the performance of his responsibilities as the Company's Chief Executive Officer and Executive Director. Further, Mr Ho has provided his assurance to the Company that the judgment will not affect or restrict Mr Ho in the performance of his responsibilities in the Company and the Executive Directors of the Company have also independently expressed their agreement with Mr Ho's current assessment of his ability to perform his responsibilities in the Company. 

"As Scintronix's claim against Mr Chow has failed in its entirety, the Company is of the view that the allegations / findings involving Mr Chow will not affect or restrict him in the performance of his responsibilities in the Company." it added. "As to Mr Ng, no findings were made against him. In any event, Mr Ng has resigned from his position as Executive Director on 29 January 2013."

Based on the Company's review of the judgment, the Board is of the view that the judgment is not expected to have any material impact on the net tangible assets or earnings per share of the Company for the financial year ending 31 December 2013. 

On 5 March 2009, Scintronix filed a Writ of Summons in the High Court of Singapore against Mr Ho. The Writ of Summons was subsequently amended on 20 May 2009 to include Mr Chow as a Defendant. In the Suit, references were also made to certain instances involving Mr Ng Hock Ching ("Mr Ng"), a former Executive Director of  the Company, although Mr Ng was not party to the Suit.

The Suit against Mr Ho and Mr Chow was disclosed in announcements issued by Scintronix on 6 March 2009 and 21 May 2009. In the announcement on 6 March 2009, Scintronix disclosed that its claims against Mr Ho relate, inter alia, to breaches of fiduciary duty and duty fidelity. In the announcement on 21 May 2009, Scintronix disclosed that its claims against Mr Chow relate, inter alia, to his alleged acts of relocating one or more of Scintronix’s employees to a competitor of Scintronix.

On 8 February 2013, the Court made its findings on liability and delivered its judgment. The Court held that Mr Ho had breached certain fiduciary duties
whilst he was a director of Scintronix on two counts: On failing to avoid potential conflicts of interest by failing to seek the approval of the
board of directors of Scintronix for the remuneration packages offered to Mr Chow and Mr Ng; and failing to act in the interest of Scintronix by authorising payments for services which were not in fact rendered.