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CINEMA magnate Goh Eng Wah has taken former Nominated Member of Parliament Robert Chua and four others to court over alleged payout shortfalls from a firm they once jointly owned.
Mr Goh, 84, who owns the Eng Wah chain of movie theatres here, is claiming he did not get his due share of a payout scheme from a firm set up to distribute Daikin air-conditioners here.
Appearing in the High Court last week, the Hokkien-speaker claimed through lawyers from Cheo, Yeoh & Associates that he has been shortchanged by about $1.09million over almost a decade.
The saga started some 40 years ago, when he and Mr Chua Joon Nam - the ex-NMP's father and a long-time friend - started the firm which became the sole agent for the air-conditioners in 1972, under the name Daikin Airconditioning Singapore (DAS).
Japan-based Daikin Industries subsequently took a majority stake in 1981, when all parties entered into an incentive scheme which, among other things, provided for 7.5per cent of the net profits before tax after the first $1million to be set aside for distribution.
Mr Goh claimed the elder Mr Chua and he were to get a third of the 7.5per cent, while the remaining third were to be shared by the local directors and senior officers of DAS.
When the elder Mr Chua died in 1989, Mr Charlie Chua became executive director, while Mr Robert Chua assumed his late father's management role.
In 2002, Daikin Industries took steps to buy out the shares of the Chuas, who then resigned as directors. It was then that Mr Goh discovered the alleged discrepancy in the past payouts due to him.
He said, in his opening statement, that from 1982 to 1991, the payment adhered to the agreed scheme but from the following year till 2002, there were shortfalls.
But the Chua directors, through lawyers from Kelvin Chia Partnership, argued that Mr Goh's percentage share was variable, based on the terms of the scheme. His contributions to the company were minimal and there was no shortfall.
The Singapore company, which is represented in the hearings by Hin Tat Augustine & Partners, is now wholly owned by the parent Daikin Industries which recently acquired the remaining shares owned by Mr Goh.
The Japan-based giant, which is defended by Tan, Oei & Oei, has been named as the first defendant in the suit.
Hearing before Justice Lai Siu Chiu resumes on Monday, when Mr Goh will testify, followed by his daughter, Ms Goh Min Yen.
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