The business process outsourcing service provider said it had entered into a deed of settlement with Tan on Tuesday for the proposed settlement of all the claims made by her against the company.
“The settlement sum is made subject to Section 227 of the Companies Act, 2016 on an ex gratia basis and constitutes a full discharge of all and any claims, obligations and liabilities that TCY may have against the company save and except for TCY’s rights to claim, counterclaim and/or seek an indemnity and to continue and maintain such claim, counterclaim and indemnity in the suit in Kuala Lumpur High Court Suit No: WA-22NCC-17-01/2017 against the company,” the loss-making company told Bursa Malaysia.
Tan was appointed as executive director on July 12, 2010. Subsequently, on Dec 28, 2015, AIM re-designated her as non-executive director and terminated her contract of employment as executive director.
On April 7 the following year, three shareholders – CG Assets Pte Ltd, AIM executive director Mak Siew Wei and Low Keng Yee – gave notices requesting for an EGM to remove Tan as director. The resolution was passed at a meeting on May 24, 2016.
(Note: The announcement to Bursa Malaysia on Tuesday gave a different date – April 22 – for the removal than what the company had announced to the exchange in 2016. AIM also said, in its latest statement, that there was only one shareholder that made the EGM requisition, which contrasts to last year’s announcement.)
“TCY has contended that the re-designation tantamount to a dismissal of TCY from her employment with the company and was wrongful and without just cause,” AIM said.
“The company has categorically and strenuously deny that the re-designation was to terminate her employment from the company and further deny that said termination, if any, was unlawful and unjust.”
AIM said it would call for a meeting of its members within two months to obtain their approval for the terms of the proposed settlement.