Sersol Bhd CEO Datuk Wira Justin Lim Hwa Tat has been removed from his post, effective Nov 6

KUALA LUMPUR (Nov 7): Chemical manufacturer Sersol Bhd has removed its chief executive officer Datuk Wira Justin Lim Hwa Tat, citing his absence from office without proper notice and not responding to a show cause letter since his suspension as CEO on Aug 30 this year.

In a filing with Bursa Malaysia on Tuesday, Sersol said Lim's termination is effective Nov 6.

On Sept 1, Sersol announced that Lim had been suspended from the post of CEO for allegedly showing insubordination and failing to act as a responsible CEO due to non-response to any of the official requests made by the board of directors since July 20, 2023.

The requests include asking him to return to the office to report to the board and pending his return from abroad to office, to provide a written response on the Malaysian Anti-Corruption Commission's (MACC) inquiry on him and what work he has been doing as CEO while he was abroad, Sersol noted.

"The board is seeking the basis to warrant Datuk Wira Justin Lim as CEO to be abroad and away from office since February 2023 and expressed concerns about whether Datuk Wira Justin Lim has been effectively discharging his role as CEO of Sersol," it said in a separate filing then.

In July this year, Sersol announced that MACC had visited Sersol's office on June 26, 2023 and subsequently recorded statements from its former executive director, its existing executive director and the independent directors of the company in relation to certain payments made by Sersol to a third party, which were allegedly approved and instructed by Lim.

"Based on the statements conducted by the MACC, the payments which were approved and instructed by Lim were in relation to five payments totalling RM2.5 million made to HGC Legacy Enterprise and recorded as deposits during April and May 2023 with purposes yet to be made known to the board. At this stage, it appears that the only member of the board who can establish contact with Lim is his father Datuk Lim Tiong Siang (who was the former executive chairman of Sersol),” said Sersol.

"Without the clarification/explanation of Datuk Wira Justin Lim and pending the company to take further action (if any), the company is not in the position to state whether the directors, major shareholders of the company or persons connected with them have any direct or indirect interest in the payments," it added.

On Tuesday, Sersol shares closed 0.5 sen or 3.45% higher at 1.5 sen, giving it a market capitalisation of RM113.64 million.

See also:
Sersol suspends CEO Justin Lim
Justin Lim’s father, two others removed from Sersol’s board in line with EGM decision