Pine Capital’s subsidiary, Advance Capital Partners Assets Management (ACPAM), has started legal proceedings against two of its former directors, Wang Meng and Pan Ki Ro, alleging breaches of statutory and fiduciary duties, the company said in a filing to SGX Monday.
Shenton Wire is unable to contact Wang and Pan for comment.
Pine Capital said the management rights of the only fund ACPAM manages, Advance Credit Fund SPC, or ACF, are with the holder of ACF’s single management share.
“The legal proceedings commenced by ACPAM against Wang and Pan relate to possible mismanagement and the transfer of the one management share in ACF from ACPAM to Wang. To the best of the board’s knowledge, the ACF management share was transferred from ACPAM to Wang, with the approval of Pan,” Pine Capital alleged in the filing.
So far, ACPAM has received an interim injunction from the Singapore High Court preventing Wang and Pan from transferring, disposing of or otherwise dealing in the ACF management share, Pine Capital said.
The injunction has also prevented Wang and Pan from exercising any rights as the holder of the management share, including interfering in ACF’s affairs and dealing with any of its assets, the filing said.
Pine Capital added that the transfer of the management share won’t materially impact its earnings per share (EPS) for the current financial year.
“While there will be loss of revenue from ACF, ACF was a loss-making activity and, after removing the associated costs, the net effect on the group’s EPS will be positive but immaterial,” Pine Capital said.