Nutryfarm clarifies that it is considering legal action against ex-CEO over settlement agreements

NUTRYFARM International clarified on Sunday (May 29) that it holds its former chief executive officer Cheng Meng personally responsible for 2 settlement agreements relating to a shortfall in delivery of durians.

The company issued the clarification in relation to an article by The Business Times on the 2 settlement agreements published on May 27. Nutryfarm’s subsidiary Global Agricapital Thailand (GAT) had entered into 2 settlement agreements amounting to a total of 33.4 million yuan (S$6.8 milion) in relation to a shortfall of durians delivered.

“The company holds Cheng Meng personally responsible for the settlement agreements, including the compensation and penalty amounts therein, all economic and financial losses suffered and that will be suffered by the company and the group, and any fiduciary and regulatory breaches as a result of his actions,” Nutryfarm said. Nutryfarm said there were no commitments or requirements on minimum quantity and/or delivery by GAT and there are no compensation clauses in the durian purchase agreements known to the company.

The company added that the settlement agreements and terms, including compensation, were entered into by its former chief executive without the knowledge of the company. It said the 2 settlement agreements were dated Jan 27 and 28 of this year, but were only made known to the company on May 23.

“The company is currently contemplating making reports to the relevant authorities in the relevant countries and taking legal actions against Cheng Meng,” it added.

Shares of Nutryfarm have been voluntarily suspended since April this year.