Netccentric’s founder saga continues as it sues ex-CEO
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Netccentric is suing its former chief and managing director for alleged unauthorised use of the company’s dime.
The ‘social media influencer’ investor (ASX:NCL) and two subsidiaries are suing Cheo Ming Shen in the State Courts of the Republic of Singapore.
They’re claiming Mr Cheo breached his duties as a director by making unauthorised business expenditure claims.
Netccentric says Mr Cheo was paid $SGD630,822.46 ($628,000) since 2015 as reimbursements for spending.
They say they haven’t been able to verify $SGD103,329.74 of that as legitimate business spending, and they’re claiming that back in the suit.
Stockhead is seeking comment from Mr Cheo.
Mr Cheo said in a letter to shareholders in October last year and he had done “everything that I possibly can to ensure that the company succeeds.”
“Prior to commencing the suit, we sought clarification from Mr Cheo on these claims but did not receive any satisfactory explanations from Mr Cheo,” the company said.
Mr Cheo “stepped down…effective immediately” in January last year from the company he cofounded in 2006.
He was voted off the board at the AGM in November after launching a law suit against his co-founder and ex-chief operating officer Timothy Tiah, and his relatives shareholders Tiah Thee Kian and Tiah Thee Seng, alleging they colluded to remove him.
The Tiahs say Mr Cheo presided over an avalanche of losses.
Mr Cheo said in his letter to shareholders last year the investments that caused the losses were flagged in the IPO prospectus.
Mr Cheo and Mr Tiah were stars of the Singapore startup scene.
They listed Netccentric in 2015 in Australia, but by early 2016 the company had shifted from a full-year profit of just under $1 million to a full-year loss of almost $2 million.
With a new chief and chairman, the company is looking to turn its fiscal fortunes around.
It reported a 44 per cent smaller loss for 2017 of $3.1 million on revenue that fell 6 per cent to $11.7 million.
Netccentric shares were flat at 1.4c on Monday at midday.