Sued boss serves writ on directors
The former chairman of troubled Yeebo (International), Makie Hui Po-yuen, who is being sued for damages by the company, has hit back with a writ alleging that two former directors breached their duties and were behind a $184 million scam.
Mr Hui's allegations follow legal action launched in March by Yeebo claiming $86 million in damages and accusing him of fraud and breach of fiduciary duty.
In a writ dated April 29, Mr Hui alleged six equipment purchases amounting to $184 million involving Yeebo, former directors Rue Steel Marshall Jr and Harry Suzuki, and other parties, were 'fake'.
The purchases were allegedly made between March 1993 and September 1995.
Yeebo is a manufacturer of printed circuit boards and liquid crystal displays.
It moved from its Wan Chai office to Kwai Chung in early April, apparently under cost-cutting measures agreed with its bankers.
After a mid-April arrangement between Yeebo and its banks to secure a credit line, Mr Marshall and Mr Suzuki were kept on as consultants to run daily operations. Mr Hui resigned from his position in March.
Although the writ is detailed in terms of payment dates, Mr Hui stated that both Mr Marshall and Mr Suzuki reported to him verbally in the course of the purchases.
Mr Hui would not comment on the allegations yesterday.
According to the 1994-95 annual report, Yeebo had $253.9 million in fixed assets as at March 31, last year.
