Fu Yu’s largest shareholder Victor Lim reinstated as director of strategy, makes new bid for board membership
Reinstatement is in view of his ‘ability to contribute to the group’, says company without further elaboration
[SINGAPORE] Components manufacturer Fu Yu has since Nov 1 reinstated its largest shareholder Victor Lim as director of strategy, a role he held for four years before leaving the company in March.
The nominating committee is currently reviewing a fresh application for directorship appointment made by Lim, a central figure in a boardroom dispute surrounding Fu Yu this year. Lim has repeatedly attempted to oust and replace company directors since January and made an unsuccessful directorship bid himself.
The decision to reinstate Lim to the role was made after considering his “ability to contribute to the group”, said Fu Yu said on Monday (Dec 22), without further elaboration. Lim’s salary from the period of his cessation to the reinstatement of his employment will be donated to charity, the company added.
Lim has also replaced Fu Yu’s fired group chief executive officer David Seow as the legal representative of several of the company’s wholly owned subsidiaries in China. Seow is seeking some S$2 million in claims from Fu Yu for alleged wrongful termination and defamation, following his dismissal on Oct 31 for gross default and misconduct.
Lim has been a key figure in a boardroom dispute at Fu Yu that resulted in all of the company’s independent directors resigning in June, leaving Seow as the sole director.
He was also involved in a probe into the company’s supply chain arm, Fu Yu Supply Chain Solutions. The unit came under investigation when an internal audit uncovered, among other issues, that it made unverifiable arrangements for a US$3 million payment to a third party, for which services did not appear to have been provided.
Lim was one of six individuals that Fu Yu had sought claims against regarding the investigation. The claims against Lim included allegations of misuse of company resources, breach of duties, misrepresentation, and a conspiracy to cause loss to the company, all of which Lim denied.
The company declared the investigation closed on Oct 3 without taking further action against the parties involved. At the time, the board took the view that pursuing investigations was not in the company’s and shareholders’ best interests, and that there was no merit in taking action against individuals flagged in the probe.
Fu Yu shares closed flat on Monday at S$0.098, before the news.
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