This article first appeared in The Edge Financial Daily on November 16, 2017

KUALA LUMPUR: Hock Seng Lee Bhd said the family dispute between its managing director Datuk Paul Yu Chee Hoe and executive director Tony Yu Yuong Wee against its shareholders — Datuk Yii Chi Hau and former executive chairman Yii Chee Ming — has been settled amicably.

In a filing with Bursa Malaysia yesterday, Hock Seng Lee said it was informed about this on Tuesday by its majority shareholder Hock Seng Lee Enterprise Sdn Bhd (HSLE) with a 58.46% stake. This follows the conclusion of a global settlement agreement last Wednesday.

“The ownership dispute over the shares of HSLE and other companies within the wider Hock Seng Lee Group has been settled and these shares have been, or are in the process of being transferred to the owners as stipulated in the global settlement agreement,” it added.

Upon completion of the transfer of shares, Paul will emerge as the single largest shareholder of HSLE and remain at the helm of the group with a 41.6% equity interest. The family of the late Yu Chee Lieng will control an equal 41.6% via its family holding companies — Tang SN Holding Sdn Bhd, Yu Chee Lieng & Sons Sdn Bhd and the estate itself. Yii Chee Sing holds the remaining 16.7%.

Paul and Chee Ming are brothers, while Tony is their nephew. The family dispute began in November 2013. On June 29, the High Court in Kuching dismissed Chee Ming’s application to remove four directors — Paul, Tony, another executive director Lau Kiing Kang and non-executive director Lau Kiing Yiing — from the board.

However, Chee Ming succeeded in getting the High Court to order the four directors to disclose matters pertaining to the acquisition and disposal of shares in Hock Seng Lee and HSLE.

This was then brought to the Court of Appeal by the board members as they were not satisfied with the decision to grant the disclosure order. Then in September, the Court of Appeal, upon the parties’ consent, granted an order to set aside the High Court’s order granted on June 29.

Hock Seng Lee, the major asset of HSLE, said it was impacted by the family dispute to the extent it was served an originating summons on Dec 19, 2016. The ensuing legal proceedings were conducted over the last 10 months.

The dispute ended when the parties agreed to enter into a consent order on Sept 20 as part of the global settlement’s terms. “The board is pleased to have these issues fully resolved and will continue to focus on progressing the business of the company and ensuring the best outcomes for shareholders,” said Hock Seng Lee.