What could have led to David Seow’s sacking as Fu Yu CEO?

ST Explains

- Timothy Goh

Plastics manufacturer Fu Yu Corporation has terminated the employment of its group chief executive, Mr David Seow, for gross default and misconduct.

In a bourse filing on Nov 1, the mainboard-listed company also said Mr Seow has ceased to be a director of Fu Yu and all its subsidiaries and related entities with effect from Oct 31.

The firm noted there are no other matters concerning Mr Seow’s cessation that had to be brought to shareholders’ attention now.

Mr Seow’s dismissal followed an internal investigation launched by Fu Yu’s newly appointed independent directors after they took office in late June.

Shareholders had queried the company’s financial performance at its annual general meeting in June, noting that the remuneration for Fu Yu’s directors and key management personnel “appeared to be high in contrast to the low revenue of the company”.

The board then uncovered several matters suggesting misconduct on Mr Seow’s part. It later engaged third-party professionals, including external legal counsel, to assess the findings. Mr Seow’s sacking was “a carefully considered decision based on established facts and supported by legal advice”, the board said.