An extraordinary general meeting (EGM) to consider a resolution to oust executive chairman of SunMoon Food Company Gary Loh will be held on Oct 5, according to a Singapore Exchange filing.
On Aug 6, six shareholders of the fruit and dehydrate produce distributor sought the EGM to propose Mr Loh's removal from the board and to appoint four new directors. The six shareholders did not provide reasons for wanting Mr Loh's removal.
The four nominated directors are Mr Tony Tan Choon Keat, Mr Mark Wee Keng Hong, Mr Tan Kah Boh Robert, and Mr Ricky Goh Hoon Kan.
After announcing on Aug 14 that the initial request to hold the EGM may not have met Companies Act requirements, the company said last Friday that this concern had been allayed.
It said the meeting would be held on Oct 5.
Mr Loh has been deputy chairman of the company since May 2007 and executive chairman since October 2013.
Before that, he was director of sales at UOB Kay Hian, where he worked from 1997 to 2006.
A shareholder at SunMoon told The Straits Times that after adjusting for non-recurring items, the company had not made a net operating profit since 2007.
He said that after adjustments, the company made an operational loss of $27.6 million in 2008, operational losses of between $1 million and $2.1 million in 2010, 2011, 2013, and 2014, and an operational loss of $5.6 million in 2012.
Independent director Tan Eng Liang said SunMoon's business had gradually improved since 2007, when it was a loss-making business in severe distress that was rescued by creditors.
However, it continued to suffer losses until September 2013, as it was impeded from restructuring its operations by debt incurred in 2007, he said.
Now that that debt had been settled, however, it was finally able to focus on expanding its business, Dr Tan said.
Yesterday, SunMoon announced on the Singapore Exchange that its latest range of fruit cups were now available on Amazon. "This is an important milestone for the company as it has worked on product development over the past year in order to channel consumer products into markets such as the US, South Korea and China," it said in the announcement.
