KUALA LUMPUR (Jan 2): Glove maker WRP Asia Pacific Sdn Bhd has initiated legal action against its former managing director and CEO Datuk Lee Son Hong as part of efforts by its directors to revive its business.

The company was in the news last year after its rubber gloves were banned by the US Customs and Border Protection agency on purported grounds that they were made with forced labour.

"The company was mismanaged by the previous CEO Datuk Lee, who refused to account to the board of directors as to WRP Asia Pacific's state of affairs," WRP Asia Pacific said in a statement today.

"With scant regard to the company or its employees, on June 17, 2019, Datuk Lee conspired to wind up the company and there is presently an action in court for conspiracy to injure.

"Additionally, the board of directors has also filed an action against Datuk Lee for criminal breach of trust involving RM8.4 million. On Nov 29, 2019, the board removed Datuk Lee as the managing director and CEO of the company," WRP Asia Pacific added.

The group said it has appointed Thomas Philip, a Kuala Lumpur-based legal firm, to carry out due diligence.

The board, it said, also arranged for an emergency shareholders' injection of RM3.25 million by TAEL Partners, a private equity fund, today to enable the interim liquidators to pay salaries to workers and executives during the temporary suspension of business operations.

Thomas Philip's managing partner Mathew Thomas Philip said WRP Asia Pacific has "promising" business prospects and there are many employees whose livelihood depends on the company.

"We are working closely with the board of directors, interim liquidators, employees and all other stakeholders involved to revive the company to its full potential. This is not just for the greater good of the company and the industry, but more importantly for Malaysia, given that our country is the largest glove maker in the world and we have to do everything possible to uphold that position," he said.