Ex-CEO of Noble Group claims millions of dollars in unpaid shares from company founder

14 Jun, 2017 9:03 am

HONG KONG – The former chief executive of troubled Hong Kong-based commodity merchant Noble Group, Yusuf Alireza, has issued a claim against the firm’s founder and emeritus chairman Richard Elman over alleged unpaid share payments worth millions of dollars.

In a writ of summons issued on June 13 to Hong Kong’s High Court, Alireza claims that Elman as well as a company called Fleet Overseas (New Zealand), which is affiliated with Elman, failed to pay out shares of Noble Group following Alireza’s departure of the company in 2016.

The writ, seen by Reuters, demands the payment of the outstanding shares and, “in addition, the Plaintiff (Alireza) claims damages for late delivery (of the shares), based on the difference in value of the shares when they ought to have been delivered on February 1 2015 … and the date of actual delivery.”

The document claims the value of the unpaid shares via two batches to be S$79.2 million ($57.3 million), and it also demands “damages for late delivery.”

Noble and Elman were not immediately available for comment.

A writ of summons is used to start legal proceedings and can lead to legal action if the demands are not met.

The shares of Hong Kong based but Singapore-listed Noble Group have collapsed by 98 percent from their 2011 peak to just 32 Singapore cents as the company battles accusations of murky accounting and a broad commodity downturn. -Reuters

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