Originally posted by Gazelle:
[b]Former NKF directors Chua, Loo and Yong declared
bankrupt
Move follows their failure to pay legal fees; Loo and Yong guilty
of negligence
(SINGAPORE) Former National Kidney Foundation (NKF) board members
Richard Yong, Loo Say San and Matilda Chua were yesterday declared
bankrupt by the High Court, after failing to meet demands for
payment issued by the charity's lawyers.
Guilty verdict: Richard Yong (left) and Loo Say San were yesterday
fined $5,000 each for being negligent in carrying out their duties
as directors of the charity. Both of them have been barred from
being directors of any company for a period of time
The move came just hours after Yong and Loo were convicted in the
Subordinate Courts of being negligent directors and fined $5,000
each. The bankruptcy order means that Yong, Loo and Ms Chua can no
longer deal in their assets, nor can they leave the country, until
the order is lifted.
Their properties will now be vested in the Official Assignee - an
officer of the court appointed as the trustee and receiver of a
bankrupt's estate - who will administer the estate, which will
include the selling of assets, registration of creditors' claims
and paying out dividends to the bankrupts' creditors.
Yong, Loo and Ms Chua will also not be able to travel or leave the
country. And all legal proceedings against them or started by them
will be stayed. The bankruptcy declaration comes three months after
the former directors admitted to having breached their duties as
directors while serving on the NKF board - an admission which threw
them open to millions of dollars worth of claims filed by the
NKF.
Yong, Loo and Ms Chua's admission of wrongdoing in February ended
the high-profile civil suit which had grabbed the public's
attention for weeks - but it also meant that they then became
liable for about $12 million worth of claims filed against them,
and former CEO TT Durai, by the NKF.
Exactly who pays how much will be assessed in a damages hearing
expected later this year.
But that wasn't all: the three former directors and Durai also owe
the NKF's lawyers, Allen & Gledhill (A&G), another $2.5
million in legal fees incurred as a result of the long-running
civil suit.
A&G issued statutory demands against Yong, Loo and Ms Chua in
April, demanding that they pay $100,000 each in legal fees, and
more than $800,000 for certain categories of damages that do not
need to be assessed. This comprises $230,000 in payouts to Ms Chua
and about $570,000 in legal fees incurred in a failed defamation
suit brought by the old NKF against Singapore Press Holdings. It is
understood that Durai is trying to work out certain terms with NKF
regarding the demands for payment.
The failure by Yong, Loo and Ms Chua to meet the demands prompted
A&G to file an application for bankruptcy against them - which
resulted in the court eventually declaring the three former
directors bankrupt yesterday.
Separately, Yong and Loo were earlier yesterday found guilty by the
Subordinate Courts for being negligent in carrying out their duties
as directors of the charity - and fined the maximum amount of
$5,000 each, under the charge. Both have been barred from being
directors of any company for a period: Yong for four years, and Loo
for three years.
The two were convicted yesterday of having failed to use
'reasonable diligence' in the discharge of their duties, by causing
NKF to make excessive payments to software company Forte Systems
Inc in 2004.
The court heard how Yong and Loo had failed to consult NKF's head
of IT, Krishnan Jayaraman, on the amount of work Forte had done,
before approving a payment sum which was deemed in excess of what
was truly owed to Forte.
District Judge Jasvender Kaur, in delivering the grounds of her
judgment yesterday, said it was 'clear that Loo had limited
knowledge and understanding of this technical project and was not
aware of NKF's rights under the agreement'.
She added: 'Yong was in an even worse position. He did not seem to
have any inkling of the relevant provisions of the agreement and
the requirements of the development of the software project.'
Judge Kaur said that directors in this day and age have to meet
demands that are more exacting than before. Citing the case of
Williams vs McKay, she said: 'A director is not an ornament, but an
essential component of corporate governance. Consequently, a
director cannot protect himself behind a paper shield bearing the
motto 'dummy director'.'
She judged that Yong and Loo had not performed their duties with
the same degree of care and diligence as a reasonable director in
their position would have.
Both were convicted under Section 157 of the Companies Act, and
made to pay the maximum fine of $5,000 each.
Commenting on the outcome yesterday, Yong and Loo's lawyer, Chia
Boon Teck, said: 'My clients were volunteer directors who attended
to NKF matters on a part-time basis. They regret not having spent
more time with their families instead. This is a wake-up call for
other volunteer directors.'
[/b]
wat bout dat TT guy? 
seem like he's getting away scot-free...
