SINGAPORE – Payment services company OxPay Financial said it did not announce a tribunal’s order for the company to pay its former chief executive and chief financial officer $77,000 for wrongful dismissal as the claim amount was “not material” to the group.
The Catalist-listed company was responding to queries by the Singapore Exchange Regulation, which had asked why the claims reported by The Business Times on Sept 19 were not announced on SGXNet earlier.
Former CEO Anthony Koh resigned from MC Payment, as Oxpay was known at the time, on July 1, 2021. A day later, CFO Madeline Sam also resigned. Their departures came after Oxpay controlling shareholder Ching Chiat Kwong succeeded in his bid to replace the directors of the company’s board.
At the time, MC Payment said that both individuals would serve a required six-month notice period. However, in December, OxPay Financial announced the immediate termination of Koh and Sam, about one month before their notice periods were up.
OxPay said the Employment Claims Tribunal’s orders, which were issued on June 16 and July 28 this year, were not announced as the board was of the view that the sum involved – $77,501.52, to be exact – was “not material” to the group.
In determining whether the orders constituted material information warranting disclosure, the board had, apart from the total equity consideration, considered that the claim amount constituted only 1.5 per cent of the group’s free cash on hand.
This amount was calculated by excluding the amount that has been earmarked for settlement of merchant funding, it said.
The board also took into account the claim amount was just 0.3 per cent of the group’s total assets, based on the group’s audited consolidated financial statements for the fiscal year ended Dec 31, 2021, it added.
“The group had sufficient cash to meet the payment of the claim amount at any time and doing so would not give rise to any cash flow problem,” it said.
OxPay, meanwhile, said all sums ordered to be paid to Mr Koh and Ms Sam under the tribunal’s orders have been fully settled, and the legal proceedings have concluded.
Shares of OxPay closed 1.5 per cent higher at 13.4 cents on Thursday. THE BUSINESS TIMES