Fu Yu Corporation chief executive officer (CEO) Ho Kang Peng is leaving the company following a Court of Appeal decision to uphold a High Court ruling that he had breached his fiduciary duties when he was chief executive of Scintronix Corp.
The court had found Mr Ho had compromised the interests of the mainboard-listed plastics manufacturing firm by authorising $169,644 in payments to a Taiwanese company, Bontech Enterprise, for services not rendered.
As a result, Mr Ho has to compensate the amount paid by the company under the sham agreement.
Mr Ho, 59, is stepping down as executive director with immediate effect but will be serving three months' notice as CEO.
The company named Mr Hew Lien Lee as acting CEO with effect from yesterday.
Mr Hew, 57, was appointed executive director and chief operating officer of Fu Yu since March 2007.
He is also the managing director of LCTH Corporation, the Malaysia subsidiary of Fu Yu Group.