David Seow, CEO and executive director of Fu Yu Corporation, has been fired by the board, which is made up of four other independent directors appointed just over four months ago.
In a Singapore Exchange (SGX) filing on Nov 1, Fu Yu says Seow, who joined the company in 2021, was terminated on Oct 31 for "gross default and misconduct".
Besides Seow, who joined the board in 2021 as an executive director, all four IDs joined the board on June 27, the day the company held its AGM.
According to Fu Yu's Nov 1 announcement, shareholders raised questions at the AGM concerning the company’s financial performance, and that the remuneration of directors and key management personnel “appear[ed] to be high in contrast to the low revenue of the company”.
Fu Yu did not name the shareholders who raised these concerns.
The company's single largest shareholder is one Victor Lim, who tried several times to call for an EGM to remove certain directors who have since left the board.
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David Seow, who was terminated from his role as CEO of Fu Yu Corp on Oct 31, joined the company in 2021. Photo: Albert Chua/The Edge Singapore
According to Fu Yu, the newly-appointed IDs took on board the queries raised and commenced an internal audit and review of the matter.
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"In so doing, the IDs discovered several matters which suggested that there had been misconduct on Mr Seow’s part.
"The IDs thereafter engaged the services of third-party professionals, including external legal counsel, who have since reviewed the matter and have rendered their opinion and advice to the IDs," reads Fu Yu's announcement.
"As there are ongoing investigations, the company is not at liberty to disclose further details at this juncture, but will do so at the appropriate time," the company adds.
"The termination of Mr Seow’s employment was a carefully considered decision based on established facts and supported by legal advice," says Fu Yu.
As listed on Fu Yu's website, Seow, previously with Société Générale, joined the company as an executive director in January 2021 and assumed the role of group managing director in August 2021, later becoming the CEO in September 2022.
The four IDs are chairman Gilbert L. Rodrigues, Yang Zhenrong, Haytham T KH S AL Essa and Ralf Pilarczyk.
As the company looks for a new CEO, it has formed an operating committee led by group general manager Gevin Bai, who is now GM of Fu Yu's Suzhou manufacturing site.
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The other members of the operating committee are the other GMs of Fu Yu's other sites in Johor, Penang, Dongguan, Zhuhai and Singapore.
"The board is confident that the robust leadership procedures will ensure stable management and uninterrupted operations of the company during this transition," says Fu Yu.
In its business update for its 3QFY2025 released on Oct 29, Fu Yu says its core manufacturing business recorded earnings of $2.4 million for the quarter, reversing from a year earlier net loss of $2.6 million.
Fu Yu Corp shares closed at 11 cents on Oct 31, down 2.78% for the day and down 19.23% year to date.
