General Announcement::Settlement of Legal Proceedings between China Environment Ltd. and Huang Min

Issuer & Securities

Issuer/ Manager
CHINA ENVIRONMENT LTD.
Securities
CHINA ENVIRONMENT LTD. - SG1Y42946521 - 5OU
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
30-Jul-2018 15:13:22
Status
New
Announcement Sub Title
Settlement of Legal Proceedings between China Environment Ltd. and Huang Min
Announcement Reference
SG180730OTHRK4YH
Submitted By (Co./ Ind. Name)
Norman Winata
Designation
Executive Chairman
Description (Please provide a detailed description of the event in the box below)
The Board refers to the Update on Injunction Application against Huang Min dated 6 Dec 2017 in relation to the pending litigation proceedings in the Singapore High Court between the Company and its subsidiary Fujian Dongyuan Environmental Protection Co. Ltd ( "FJDY" ) against the former Executive Chairman of the Company, Huang Min, his wife and two children (the "Suit" ).

The Board wishes to announce that the Company and FJDY have concluded a settlement with Huang Min and the other defendants, and the pending litigation will shortly be discontinued by consent.

The terms of settlement include payment by the Huang Min (and his family) to the Company of a settlement sum of S$1.2 million and a full and final settlement of all claims between the parties, not only in relation to the claims and disputes in the Suit, but also in relation to any and all claims, complaints or issues that the parties and/or their associates may have against each another (howsoever arising, whether now or in future). In particular, the following claims (not exhaustive) have also been settled:-

(a) Claims by the Defendants and/or their associates (including their relatives and/or extended family and the companies owned or controlled by any one of them) against the Company and/or its subsidiaries;

(b) Claim of RMB47 million made by Fujian Mintai Environmental Protection Co. Ltd (referred to in the General Announcement: Receipt of Letter of Demand dated 14 November 2017);

It is also a term of the settlement that Mr Yang Meng Yang, Huang Min's son-in-law, resign from his position on the Company's Board. Mr Yang Meng Yang is accordingly no longer a director of the Company, effective 25 July 2018.

The Board is of the view that the settlement of the Suit is in the best interests of the Company, and will allow the Company's limited resources to be better channelled toward rebuilding the Company and reviving and diversifying its operations and businesses.