KUALA LUMPUR (June 24): PeterLabs Holdings Bhd (KL:PLABS) said Datuk Loh Saw Foong, who was suspended from the company's board on May 13, has been allowed to resume his role as executive director with immediate effect.

The board also lifted the suspension of Loh's position as general manager of PeterLabs's subsidiary Thye On Tong Trading Sdn Bhd (TOT), the animal health and nutrition products specialist said in a bourse filing on Tuesday.

The lifting of the suspension is subject to a revised terms of duties and responsibilities, the group added.

In a separate filing, PeterLabs and TOT said they have instructed their solicitors to withdraw the legal action against Loh and Datin Lin Ching Yein, with liberty to file afresh. Case management for the matter has been scheduled for July 2.

PeterLabs suspended Loh on May 13 to facilitate an independent review into allegations of misconduct against him.

The group had said that the suspension was a "precautionary measure" to allow for an independent and comprehensive internal investigation into alleged breaches of company policies and the terms and conditions of Loh's employment.

On May 19, the Malaysian Anti-Corruption Commission (MACC) raided the offices of PeterLabs and TOT, following a report lodged by the company over alleged misconduct involving Loh.

PeterLabs said the report was submitted to MACC on May 9, pertaining to alleged “serious allegations of misconduct, conflict of interest and breach of fiduciary duties” by Loh.

During the raid, MACC officers seized certain documents and files from both the principal and registered offices of PeterLabs and TOT that are believed to be relevant to the ongoing probe, PeterLabs said.

In its filing on Tuesday, PeterLabs also said it will discontinue its legal action against substantial shareholders Bu Yaw Seng (who holds a 10.08% stake) and Lin (who holds 5.93%). The group initiated the lawsuit on May 30 to deny the two shareholders' request to convene an extraordinary general meeting to remove certain directors.

The group added that Bu and Lin, on their part, will  discontinue their counterclaim on the matter against the group and its board, comprising non-executive chairman Datuk Lim Tai Soon, group managing director Lim Tong Seng, executive director Teo Chin Heng, and directors Datuk Ng Boon Siong, Loh Poh Im, Ho Siew Li, Yap Siaw Peng.

Shares of PeterLabs rose one sen or 2.5% to 40.5 sen, giving the group a market capitalisation of RM111.5 million. The counter has surged 113.16% year-to-date.