SINGAPORE - Catalist-listed DeClout and its chairman and chief executive Wong Kok Khun will continue to face a lawsuit involving a former subsidiary's shares after the Singapore High Court agreed to reinstate the plaintiff's claims.
HRA Corp had in July 2017 filed a suit against DeClout, Mr Wong and former director Marcus Cheng Mun Yip, who was chief executive of DeClout's former subsidiary, Acclivis Technologies and Solutions.
In its original claim, HRA alleged that Mr Cheng had subscribed to Acclivis shares on behalf of HRA, and was not entitled to deal with the Acclivis shares in his own name. HRA had also alleged that DeClout and Mr Wong were aware of HRA's beneficial interest in the Acclivis shares, and had assisted in causing loss to HRA. DeClout has since sold Acclivis.
The High Court in October 2017 struck out HRA's suit against DeClout and Mr Wong, and awarded costs of S$20,000 to each of them. But HRA subsequently appealed those orders.
In the latest development, the High Court allowed HRA's appeal, reinstating all but one of the claims against DeClout and Mr Wong. The amended HRA claim will thereafter proceed to trial.
DeClout and Mr Wong will nevertheless remain entitled to receive costs of the amendment from HRA, which will be determined in due course.
In a filing with the Singapore Exchange on Wednesday morning (March 21), DeClout said: "The company is of the position that the claims and allegations made against the company and Mr Wong are baseless and unmeritorious, and has instructed its lawyers accordingly."
DeClout shares closed S$0.001 or 1.2 per cent down at S$0.085 on Tuesday.