Sheng Siong deems independent director suitable to remain in role amid lawsuit
THE board of Sheng Siong has deemed Tan Huay Lim suitable to remain in his role as the company’s independent director and audit and risk committee (ARC) chairman, amid a lawsuit against him by a substantial unitholder of Dasin Retail Trust .
Tan informed Sheng Siong’s board that he had received an originating claim filed against him on May 25, by Zhang Zhencheng, a substantial unitholder of Dasin Retail Trust, and a non-executive director of its trustee-manager. Tan is the lead independent director and chairman of the ARC of the trustee-manager.
In a bourse filing on Monday (May 29), Sheng Siong noted that the lawsuit involves allegations that Tan had conducted affairs in a manner oppressive and prejudicial to Zhang’s interests. The claim is related to issues of refinancing term loan facilities and a memorandum of understanding of the trustee-manager, Sheng Siong added.
These matters “do not at this time suggest an adverse finding on the character and integrity of Tan, nor does it compromise the capabilities of Tan as the independent director and chairman of the ARC of the company”, Sheng Siong said.
It reached this finding after the company’s board and nominating committee (NC) considered the information provided by Tan and publicly disclosed. Tan abstained from the NC’s assessment of his suitability.
“During the tenure of Tan with the company, (he) has discharged his duties diligently with integrity and professionalism… (The) NC and the board are of the view that Tan remains suitable to continue as the independent director and chairman of the ARC of the company and believe that his continued appointment is in the interests of the group,” Sheng Siong said in the filing.
The company’s board will monitor the progress of the claim and evaluate Tan’s continued suitability based on any updated information.
Sheng Siong shares closed at S$1.63 on Monday, down 1.2 per cent.
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