Dufu ropes in services of former CEO’s firm

Yong will train, guide and advice the acting CEO in the day-to-day operations and business development of DISB.

KUALA LUMPUR: Hard-disk drive (HDD) manufacturer Dufu Technology Corp Bhd has appointed an independent contractor to train the acting CEO of its wholly owned subsidiary Dufu Industries Sdn Bhd (DISB).

In a filing with Bursa Malaysia, Penang-based Dufu said DISB had entered into an agreement for independent contractor services with Aspire Ambience Sdn Bhd to perform the services including training DISB the acting CEO for RM40,000 a month.

Aspire Ambience is a private limited company incorporated on May 25, 2015 with an authorised share capital of RM400,000 comprising 400,000 ordinary shares of RM1 each.

The company has an issued and paid-up capital of RM2 comprising two ordinary shares of RM1 each. The intended principal activity of Aspire Ambience is provision of consultation services.

The directors and proposed shareholders of Aspire Ambience are Yong Poh Yow and his spouse Lim Bee Leng.

Yong was a former executive director and CEO of Dufu. He resigned on Aug 27.

“The monthly fee was derived after negotiation between the management and Yong, benchmarked against the salary, fee, allowances and benefit-in-kind paid to Yong prior to his resignation,” Dufu said in the filing with Bursa.

Dufu stressed that the Aspire Ambience was an independent contractor and not an employee, agent, joint venturer or partner of the company.

“The directors of Dufu are of opinion that such services agreement is in the best interest of Dufu in view of the substantial involvement of Yong in the day-to-day operations of DISB previously.

“Upon the resignation of Yong as the executive director/CEO of DISB, the board of Dufu has deliberated and believed that such engagement of Aspire Ambience as an consultant to DISB would facilitate a smooth transition until appointment of a new CEO to Dufu group,” it said.

According to the service agreement, Aspire Ambience will train, guide and advise the acting CEO in the day-to-day operations and business development of DISB.

Aspire Ambience would also assist DISB in creating reports, marketing materials and presentations while liaising with counterparties.

The contractor would also help to examine distribution channels, strategic and financial contacts and counterparties with the aim of increasing DISB’s visibility and market access to its products as well as assessing and proposing to the board of Dufu on potential opportunities in sectors other than HDD and sensor and control industries.

The company needs to adhere strictly to the direction of the Dufu’s board of directors and to attend any meetings as and when directed by the Dufu board.

Dufu shares rose two sen, or 6.9% to 31 sen at closing yesterday.