Darco Water gets complaint letter calling for legal action against deputy chairman

DARCO Water Technologies has received a letter from a group of shareholders who collectively hold substantial interest, urging the company to commence legal action against non-executive deputy chairman Wang Zhi.

Darco Water, in its regulatory statement on Wednesday, disclosed that a group of shareholders with total stakes of 16.1 per cent has called for legal action against Mr Wang and one other person - unnamed in the statement - over allegations of various wrongdoings.

The complainants alleged that the duo have breached their duties in transactions pertaining to payments for a consultancy agreement entered into by the company, the undertaking by Mr Wang to procure the transfer of a water treatment asset or concession, and the now-aborted acquisition of a majority stake in PT Panghegar Energy Indonesia in relation to a waste-to-energy project in West Java.

The complainants also threatened that they would apply to the court to commence legal proceedings in the name of the company, if the board fails to take out legal action as called for within 14 days. Further, they will claim the litigation fees and expenses incurred in such legal proceedings from the company.

Darco Water is consulting the lawyers on this matter and will take actions where necessary in response to the letter. It stated any director who is in a position of conflict with regard to the allegations will be asked to recuse from participating in any deliberations and decision-making concerning such allegations.

The counter was unchanged at S$0.19 at Wednesday close, before this statement was posted.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL