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SBI advised to pursue breach of directors' duties
SBI Offshore said after Friday trading close it has been advised by a progress update from appointed legal advisors from UniLegal LLC, to commence proceedings against Hui Choon Ho and Tan Woo Thian for breach of directors' duties.
Mr Hui and Mr Tan were respective signatories to two sets of agreements with conflicting key details for the purchase and subsequent sale of a stake in Jiangyin Neptune Appliance Co Ltd (NPT).
The progress update drawing on advice of lawyers in China said the recognised agreements for China's legal purposes that were also submitted for approval to Jiangyin Bureau of Foreign Trade and Economic Co-operation stated SBI acquired the NPT stake for US$350,000 and sold the interest for US$1.75 million.
This is in contrast to the US$1.75 million and US$3.5 million for the stake acquisition and divestment announced by SBI.
The progress update submitted by legal advisors from UniLegal LLC also stated the company has good cause under the law to take legal proceedings against Lau Yoke Mun, an ex-employee of SBI who was appointed as a service provider to a wholly-owned subsidiary of SBI.
Mr Lau was found among others, to have lied to SBI's board of directors about misplacing the company's bank tokens and a police report had been filed against him for misappropriating funds in Solar Africa Investments Pty Ltd (SAI), the update said.
SAI is 100 per cent owned by Solar Energy Investments, a wholly-owned subsidiary of SBI.