KUALA LUMPUR (Aug 14): An out of court settlement agreement is understood to be currently in the works for the alleged wrongful dismissal of Menang Corp (M) Bhd deputy managing director Toh May Fook.

theedgemarkets.com was present at the industrial court trial for the case that was scheduled at 9am today, in which Toh is seeking a reinstatement of his employment at Menang on the grounds of wrongful termination by the company.

However, the hearing did not commence as Toh; Menang Corp’s former MD, Datuk Eddie Shun Leong Kwong; and their respective legal counsels were in the chambers of the Industrial Court's chairman for close to an hour.

It is understood that parties had agreed to work out a settlement. The discussed terms of agreement is not known at press time. However, as the terms of settlement are not finalised yet, Toh and his legal representation have not withdrawn their claims against the company.

To recap, Toh took on the role of Menang deputy MD on a two year contract on April 26, 2016 but was instead terminated from his duties and responsibilities less than three months later on July 19, 2016.

He was redesignated as non-executive director and eventually retired in November the same year.

An investigative committee was set up on Aug 26 that year to review Toh’s conduct as director. Pending outcome of the investigation, Toh was suspended as director on Aug 25. On Sept 1, Menang explained to Bursa Malaysia that Toh had appointed a financial consultant to look into specific land transactions in 2005 that were undertaken without the knowledge or approval of the group managing director and the board.

Toh had clarified that he asked an accounting firm to independently review the land transactions, after discovering some questionable deals. After he was removed as deputy MD, Toh had remained a substantial shareholder of Menang with a 12.5% stake as at Jan 12, 2018.

The Edge had reported that Shun was charged in July last year, with questionable land dealings involving two companies — The Continuum Sanctuary Commercial Sdn Bhd and Menang’s wholly-owned Menang Development (M) Sdn Bhd. Shun pleaded not guilty on Aug 2.

In December last year, the Sessions Court granted Shun a discharge not amounting to an acquital.