Innopac's independent director quits over disgreement after JV termination

An independent director of Innopac Holdings has resigned due to disagreements about certain claims for financial compensation after the termination of a joint venture last year.

Yang Kiin tendered his resignation on Feb 1 citing differences with management and unfounded allegations of his misconduct by the board.

In response to a Singapore Exchange (SGX) query over the announcement, which did not state the effective date of his resignation, Mr Yang said that he had been hindered in carrying out his duty as an independent non-executive director, and a member of the audit committee due to a lack of response to queries and documents.

"I had difficulty with management in getting additional details and supporting documents on a certain project," he said.

In the same response by the company, Innopac said that the differences had arisen after the firm's subsidiary terminated the joint venture agreement with RC Carbon Sdn Bhd in November last year. Mr Yang is a director and shareholder of RC Carbon.

RC Carbon has made certain claims for financial compensation against the firm which Innopac does not believe are valid.

Following the termination, Mr Yang requested a meeting of the audit committee to be convened, and also for various documents.

At the meeting held on Jan 11 this year, three directors - Ong Kah Hock, Moehamad Izat Emir and Wong Chin Yong - met Mr Yang. They informed him then that the company had received reports of Mr Yang allegedly making defamatory statements relating to the company's joint venture with Primeforth Renewable Energy Pte Ltd.

Mr Yang denied making these statements, and agreed to provide a written statement to the board confirming it.

Five days later, the SGX requested a meeting with the audit committee including Mr Yang.

A day before the meeting that was to take place on Jan 26, Mr Yang asked the firm if he could be excused from the meeting if he resigned as a director. Innopac replied that they did not agree such a course of action would entitle him to absence himself from the meeting.

The next day, Mr Yang issued an unsigned letter of resignation to the company before the scheduled meeting with the SGX, and did not attend the meeting.

Innopac said that Mr Yang has characterised the allegations in the alleged defamatory statements as being "unfounded allegations of his misconduct".

"That is the personal view of Mr Yang which the company does not agree with," it said.

Queried further on why two independent directors of the group and its group financial controller Stanley Chu had resigned over the past 12 months, Innopac said that Mr Chu resigned as he wanted to retire.

"As to the resignations of its independent directors, they had each done so for their own personal reasons and the company is unable to provide any specific reason or cause for the turnover of its independent directors," it said.

Andrea Soh

05 February 2018