Pine Capital to settle 'outstanding obligations' with unit's ex-interim CEO

Published Thu, Oct 8, 2020 · 10:30 AM

CATALIST-LISTED investment firm Pine Capital has reached a settlement with its subsidiary, Advance Capital Partners Asset Management (ACPAM), and former interim chief executive and chairman Tan Choon Wee in relation to "outstanding obligations" from the previous settlement agreement.

Mr Tan had sued the group last year, saying that ACPAM's affairs had been conducted in a manner prejudicial to him. The group had, in April last year, called for an extraordinary general meeting to propose his removal from the board of ACPAM - when he was its sitting chief executive and director.

Pine Capital said it "received numerous allegations from various parties concerning the operations of ACPAM, including allegations in respect of (a) potential conflict of interest and possible lapses in internal control".

Pine Capital subsequently commenced its own legal proceedings against Mr Tan and other former directors and officers of ACPAM. The parties reached a global settlement following mediation in October 2019.

However, Pine Capital said in a regulatory update on Thursday that there were still "outstanding obligations on the company's part" under the original settlement agreement. Therefore, it had, on Wednesday, reached a settlement agreement with Mr Tan and ACPAM regarding those obligations.

The company's entry into the settlement agreement is not expected to have any material impact on the financial performance of the company or group, said Pine Capital. It will provide further updates to shareholders when there are material developments.