Three directors of door-maker KLW Holdings were removed at an extraordinary general meeting (EGM) yesterday.
Shareholders voted to replace company founder and managing director Lee Boon Teck as well as independent directors Teo Hin Guan and Low Hai Lee. The remaining independent director, Mr Ho Pong Chong, has resigned, The Straits Times understands.
Shareholders voted in Mr Wong Joo Wan, Mr Lim Jit Siew and Mr Nicholas Jeyaraj Narayanan as new directors. They were also to have voted on a resolution to appoint Mr Quek Chek Lan as director, but this did not go to a ballot.
Mr Teo and Mr Low had noted in a statement posted on the Singapore Exchange website on Oct 1 that Mr Quek was over 70 years old and so could be appointed director only at an annual general meeting and not an EGM, according to the Companies Act.
On May 27, KLW announced that Mr Lee had entered into three early-stage contracts regarding projects in Bali and China last year without board approval. These involved KLW paying commitment fees of $16.2 million, it said.
The deals did not happen by the July 2014 deadline and so the fees were to have been refunded in full, said the Oct 1 statement posted by Mr Teo and Mr Low.
KLW appointed PricewaterhouseCoopers in June this year to conduct a special audit on the contracts.
On Sept 23, Mr Quek and another investor said they were seeking an EGM to oust the three directors, stating that KLW might suffer "irrevocable damage" if no immediate action was taken to address recent developments at the company.
KLW had recovered $9 million of the commitment fees so far, said the Oct 1 statement.
When contacted, Mr Wong said his plans included familiarising himself with the company and seeking the recovery of the remaining $7.2 million in commitment fees.