Tiong Seng Holdings Limited Settles S\$3 Million Legal Dispute with Former Managing Director and Associated Parties

Key Points of the Settlement

• Tiong Seng Holdings Limited (SGX-listed) has announced the settlement of a major legal dispute initiated by its subsidiary, Robin Village Development Pte. Ltd. (RVD).
• The proceedings were commenced against Michael Seah Chun Hian (former Managing Director of RVD), his wife, their daughters, and SW Metal & Construction Pte Ltd (a company controlled by one of Seah’s daughters).
• The suit alleged the diversion of business and profits, as well as wrongful use of RVD’s resources for personal gain, with estimated losses of approximately S\$3 million.
• A settlement was reached before the conclusion of the trial, with the defendants agreeing to pay S\$2,750,000 to RVD in full and final settlement.
• Additionally, SW Metal & Construction Pte Ltd has withdrawn its counterclaim of S\$399,827.37 against RVD.
• The legal proceedings have been discontinued, ending all claims related to the dispute.

Important Information for Shareholders

• Material Recovery: The settlement recovers a substantial portion of the alleged losses (over 90%), potentially reducing the impact on RVD’s financials and restoring investor confidence.
• End to Legal Uncertainty: With the trial discontinued and all claims withdrawn, Tiong Seng Holdings is no longer exposed to further litigation risk or associated legal costs in this matter.
• No Admission of Liability: The settlement does not indicate any admission of liability; it is a full and final settlement, closing all outstanding issues related to the case.
• Potential Impact on Share Price: The resolution of the dispute and recovery of funds may have a positive impact on Tiong Seng Holdings’ share price, given the removal of a significant legal and financial overhang.
• Corporate Governance: The legal action and its resolution highlight the company’s commitment to upholding corporate governance and protecting shareholder interests.

Additional Details

The legal proceedings were initially disclosed in August 2023, with the company estimating a loss of S\$3 million due to alleged misconduct by the former managing director and his related parties. The settlement, announced on November 6, 2025, brings closure with a substantial monetary recovery and the withdrawal of all counterclaims. The executive director and CEO, Pek Lian Guan, authorized the announcement, signaling strong leadership and transparency.

Conclusion

This settlement is a significant event for Tiong Seng Holdings Limited and its shareholders. It removes legal uncertainties, recovers substantial funds, and closes a chapter on a potentially damaging episode. Investors should monitor the company’s forthcoming financial statements for the impact of the recovered funds, and may view the resolution as a positive step for both governance and future profitability.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult their financial advisers before making any investment decisions. The information presented is based on company announcements and may be subject to updates or changes.

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