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Magnus Energy fires legal salvo at 7 former directors and officers

MAGNUS Energy Group has filed a lawsuit against seven former directors and officers, it said in a statement to the Singapore Exchange on Wednesday.

The Catalist-listed company said the writ of summons filed on March 3 is to recover damages as a result of the defendants’ alleged breaches of their duties and obligations to the company, as well as their alleged breaches of trust in respect of its assets.

The defendants allegedly failed to carry out due diligence and/or failed to appoint legal advisers to carry out due diligence, and failed to take steps towards recovering outstanding payment, in connection with the following transactions under the purview of the defendants:

a) Acquisition and disposal of the company’s shares in GCM Resources;
b) Loans to and projects with the Indonesian contractor, Hanjungin;
c) Joint investment agreement with Yangtze Investment Partners Limited;
d) Convertible loan with Revenue Anchor; and
e) Construction and development of a microalgae plant in Selangor, Malaysia.

Against Luke Ho Khee Yong (former chief executive officer), and Seet Chor Hoon (former independent director), Magnus is claiming S$107,745.11 in respect of the sums it overpaid to Mr Ho, or alternatively, damages to be assessed.

As against all defendants, the company claims costs, interests and other relief as the High Court deems fit.

The other five defendants are: Kushairi Zaidel (former chairman and independent director), Ong Sing Huat (former non-independent non-executive director),  Ong Chin Chuan (former independent director), Lim Kuan Yew (former managing director) and Koh Teng Kiat (former chief operating officer and executive director).