Durian supplier NutryFarm weighing legal action against ex-CEO

Shares of NutryFarm have been voluntarily suspended since April this year. PHOTO: AFP

SINGAPORE (THE BUSINESS TIMES) - NutryFarm International said on Sunday (May 29) that it holds its former chief executive officer Cheng Meng personally responsible for two settlement agreements relating to a shortfall in delivery of durians.

The mainboard-listed durian and health foods distributor issued the clarification in relation to an article by The Business Times on the two settlement agreements published on May 27. NutryFarm subsidiary Global Agricapital Thailand (GAT) had entered into two settlement agreements amounting to a total of 33.4 million yuan (S$6.8 milion) in relation to a shortfall of durians delivered.

"The company holds Cheng Meng personally responsible for the settlement agreements, including the compensation and penalty amounts therein, all economic and financial losses suffered and that will be suffered by the company and the group, and any fiduciary and regulatory breaches as a result of his actions," NutryFarm said.

NutryFarm said there were no commitments or requirements on minimum quantity and/or delivery by GAT and there are no compensation clauses in the durian purchase agreements known to the company.

The company added that the settlement agreements and terms, including compensation, were entered into by its former CEO without the knowledge of the company. It said the two settlement agreements were dated Jan 27 and 28 of this year, but were made known to the company only on May 23.

"The company is currently contemplating making reports to the relevant authorities in the relevant countries and taking legal actions against Cheng Meng," it added.

Shares of NutryFarm have been voluntarily suspended since April this year.

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