Darco Water ex-CEO to contest lawsuit brought by company

DARCO Water Technologies on Monday announced that on Sept 9, its legal counsel managed to serve a writ of summons and statement of claim on its former director and chief executive officer, Thye Kim Meng, by way of personal service at his residence.

Mr Thye has acknowledged this service, and entered an appearance in the lawsuit on Sept 11, the mainboard-listed firm added in its bourse filing. A defendant who is served with a writ of summons and wishes to contest the plaintiff's claim has to enter an appearance in the legal action by a deadline.

Last Wednesday, Darco had said that it filed the writ and statement to claim relief for Mr Thye's alleged breach of duties in a water project and a solar project, but that its legal counsel's attempts to serve the legal documents on him on Sept 4 and Sept 6 were unsuccessful.

The company also said last Wednesday that he did not respond to a letter of demand issued on Aug 12 for US$1.6 million in losses and damages suffered by Darco due to his alleged breach of duties in respect of the same two projects.

Mr Thye on Aug 14 responded to those allegations, calling them "an attempt to undermine the work and contributions" which he made to the company.

On Monday, Darco noted that it will make further announcements as appropriate to update shareholders accordingly.

Darco shares last traded at S$0.16 on Aug 24.