Law firm Rajah & Tann has completed its report pertaining to the investigations over the ongoing probe of its subsidiary unit Fu Yu Supply Chain Solutions, announced Fu Yu Corporationon the evening of June 17.
The report is finalised but has not gone through the Maxwellisation process, where individuals or organisations criticised in an official report are given the chance to report before publication. Fu Yu said it will conduct a full Maxwellisation process, which is expected to take between four to six weeks.
According to the company, the report does not highlight any new transactions that require further scrutiny. The report touches on Fu Yu’s acquisition of Avantgarde Enterprise, now Fu Yu Supply Chain Solutions, the alleged misuse of the subsidiary’s resources and the payment of a pre-paid commission of US$2.98 million ($3.8 million).
The report also touches on Evertree Hong Kong’s claim of US$925,773.57 as compensation for services rendered under an alleged profit sharing agreement with Fu Yu Supply Chain Solutions dated Sept 1, 2023.
The June 17 statement also said the court application to convene an extraordinary general meeting (EGM) has come to an end. The request was made by Victor Lim Wei De, who has been working as director of strategy in the company and is the company’s largest shareholder.
The EGM call was rejected by Fu Yu, said the company on Jan 31.
In a separate statement, Fu Yu said it was “actively seeking” to appoint “experienced independent non-executive directors” to its board and has reached out to the Singapore Institute of Directors to invite suitable individuals who may be interested.
On June 15, Fu Yu announced that all three of its independent directors had resigned with effect from June 11, leaving executive director and CEO David Seow as the sole remaining board member.
Two of the directors who quit cited the persistent attempts to remove them as well as the differences in opinion over the probe in Fu Yu Supply Chain Solutions.
Shares in Fu Yu closed at 9 cents on June 17.