Former Fu Yu CEO demands $2m over alleged wrongful sacking, defamation

Mainboard-listed firm sets out reasons for firing, says he 'breached his fiduciary duties'

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Fu Yu has received two letters of demand from fired chief executive David Seow, claiming about $2 million in total over alleged wrongful termination and defamation.

The mainboard-listed manufacturer of plastic and metal components and products said in a bourse filing on Nov 6 that it had received a letter of demand dated Nov 4, in which Mr Seow claims $1,853,548.39 in salary.

Mr Seow separately sent a letter of demand dated Nov 5 to Fu Yu, its independent directors and corporate secretary, alleging defamation and demanding that a bourse filing on Nov 1 announcing his firing be retracted. Fu Yu added that Mr Seow also demanded a signed apology to be published on SGXNet and damages of $200,000, among other things.

Fu Yu said it is obtaining legal advice; it believes that the letters and any potential legal proceedings "will not affect" its continued business operations.

It also set out the reasons for firing Mr Seow, and said the 40-year-old "had breached his fiduciary duties owed" to the company, including his duty to "act bona fide in its best interests". Instead, Fu Yu said, he had "(used) his position and office to gain advantages for himself".

Fu Yu said Mr Seow's termination was the result of an investigation that was initiated after shareholders raised concerns at the company's annual general meeting in June.

Shareholders had questioned the company's financial performance and the remuneration granted to directors and key management personnel, which "appeared to be high in contrast to the low revenue of the company". The independent directors then initiated an internal audit and review, which led them to discover several matters to suggest "gross default and/or misconduct" on Mr Seow's part.