In a filing to SGX dated March 17, Darco Waters Technologies has disclosed that a group of shareholders representing 16.1% shareholding interest in the company has requested the board of directors to commence action against director and non-executive deputy chairman Wang Zhi as well as another undisclosed person.
The request follows allegations of wrongdoings pertaining to certain payments in relation to a consultancy agreement entered into by Darco Waters, Wang’s undertaking to procure the transfer of a water treatment asset, as well as the aborted acquisition of 75% of the total share capital of PT Panghegar Energy Indonesia in relation to a waste-to-energy project in West Java.
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Darco Waters states that it is currently in consultation with its legal advisor and will recommend actions in due course. It notes that any directors “in a position of conflict as regard any or all of the allegations made” will be recused from the relevant deliberations.
The filing also states that the shareholders have given notice to the company that should the board fail to commence legal action within 14 days, the shareholders will commence legal proceedings against the company.
Shares in Darco Waters closed flat at 19 cents on March 17.
