Alpha DX ex-directors cite lack of timely updates, disagreements with CEO as reasons for resignation

FOUR former directors of learning-solutions company Alpha DX Group VVL : VVL 0%have given their detailed explanations for why they resigned from the company earlier this year.

This comes after the Singapore Exchange Regulation (SGX RegCo) directed Alpha DX to obtain and disclose "detailed explanations" from the directors after all 4 of them quit the company over the span of just 2 weeks.

Among other things, the 4 directors - Chang Chi Hsung, Max Ng Chee Weng, Chew Yean Nee and Fabian Sven Bahadur Scheler - said updates concerning company matters and announcement materials were not given in a timely manner or sent over to be reviewed on short notice.

And while they had taken steps to engage with the management of the company on the issue, nothing was done to rectify the matter.

For example, according to Chew, the board once received an email on Nov 17, 2021, requesting for acquisition of licence and ratification resolution approval that was required for an announcement to be made the following day.

Separately, Scheler said he resigned due to disagreements with Alpha DX's chief executive officer Daiji Yamada and 2 of the 4 non-executive members of the board on the company's restructuring.

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Scheler said he had raised issues with Alpha DX's decision to invest in JobForesight and acquire educational institution ERC Institute (ERCI), and opined that the company should look into abandoning the transactions and recover the cash to deal with its creditors.

However, Yamada had disagreed and said he did not wish to reverse the transactions.

Additionally, Scheler said Yamada was unable to "effectively deal with the restructuring situation" as he resisted appointing a restructuring consultant and did not provide timely responses to questions raised by Scheler on the status of the company's deposits.

"From the current state of the company, it is evident that the CEO is not sufficiently experienced as a CEO of a Singapore-listed company and cannot manage the restructuring and deal with the creditors of the Company," he said.

Scheler then suggested during a board meeting on Mar 7 that Yamada should step down from the restructuring exercise.

Alpha DX last traded at S$0.112 before a trading halt was called on Mar 7.

READ MORE

• SGX RegCo slaps Alpha DX with compliance notice after 4 directors quit over a fortnight

• 2 more Alpha DX directors resign

• Alpha DX flags going concern uncertainty after recent problems with creditors