Tuesday 28 May 2024
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KUALA LUMPUR (Jan 6): Glove manufacturer Hartalega Holdings Bhd and its two subsidiaries are suing its former executive director Danaraj A/L Nadarajah, accusing him of having set up a competing business using one of the unit's resources during his tenure with Hartalega.

They are seeking a declaration that he had breached his fiduciary duty, his duty of fidelity to the three companies, as well as his contract, and to claim for damages for his actions, Hartalega's bourse filing today showed.

According to Hartalega's 2019 Annual Report, Danaraj held the position of executive director from July 4, 2011. He was in charge of Hartalega’s subsidiaries in China and India, where he was also an equity partner. He resigned on July 1, 2020.

According to Hartalega, it had, together with the two subsidiaries — Hartalega Sdn Bhd and Mun Health Product (India) Pvt Ltd — discovered that Danaraj had taken steps to set up the business using the resources of Mun Health Product (India), while he was the group's executive director and a director of Mun Health Product (India).

The group said the writ of summons and the statement of claim against Danaraj was filed with the Shah Alam High Court on Dec 30, through its solicitors Messrs K. Sugu & Associates.

It said the outcome of the Writ of Summons is not expected to have a material impact on the company’s finance and operations.

Shares of Hartalega closed unchanged at RM10.60 today, giving the group a market capitalisation of RM36.33 billion. It saw some 10.53 million shares traded.

Edited ByTan Choe Choe
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