AUDITED FINANCIAL STATEMENTS 2022 177 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 56 MATERIAL LITIGATION (CONTINUED) (ii) On 12 February 2019, all Defendants to the suit filed by the Company on 23 November 2018 against its former members of the Board of Directors and former employees on the acquisition of APL (“Company suit”) had filed their respective Defences except for one, who was directed by the High Court to file his Defence on or before 4 March 2019. On 11 February 2019, certain Defendants to the Company suit had filed a counterclaim (“the Counterclaim”) against the Company and the previous members of the Board of Directors of the Company (“Counterclaim Defendants”). The Counterclaim seeks reliefs, jointly and severally, against the Company and the Counterclaim Defendants for declaration that the Company and the Counterclaim Defendants were liable for the loss of RM514 million (in the Company’s suit) and for any damages, general damages and interest at 5% per annum to be indemnified by the Company and Counterclaim Defendants. On 8 November 2019, the Counterclaim Defendants filed an application to strike out the Counterclaim. The High Court after hearing both parties, had struck out the Counterclaim and dismissed the 10th to 14th Defendants’ claim with costs. The High Court also directed the Defendants to file and serve their Amended Defence. On 13 January 2020, the Solicitors of 8th Defendant updated the Court that they had filed an application to amend their Defence. On 6 September 2021, the Court of Appeal heard and allowed the 10th to 14th Defendants’ appeal and reversed the decision of the High Court. The Company filed an application for leave to appeal to the Federal Court (‘Leave Application”). The Court had on 8 June 2022 informed that the case would be transferred to NCvC 12 (new civil court) and no official letter of the direction from the new judge. On 5 October 2022, the Federal Court did not allow the Plaintiff’s application for Leave to Appeal and therefore, the Main Action and the Counterclaim will proceed to trial in the High Court. The Court has fixed new trial dates on 17 to 19 April 2023 and fixed for a case management and hearing for 10th to 14th Defendants amendment application on the counter claim on 22 February 2023. On 22 February 2023, the Judge indicated that this case would be more suitable to be heard in a Commercial Court (the case was filed in a Civil Court). Hence, the case management and hearing of 10th to 14th Defendants amendment application on the counter claim could not proceed. Additionally, the 1st Defendant has filed an application to amend his defence. The case has been transferred to the Commercial Court. The Court has fixed a case management on 31 March 2023. The remaining claims are not material to be disclosed in the financial statements and deemed remote by the Directors. 57 SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR On 30 September 2020, United States Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) against the Group’s palm oil and palm products . In November 2020, the Group established a Foreign Workers Working Committee (FWWC) to focus on continuous improvement with regards to infrastructures on the ground that will further strengthen its labour practices. These include among other things, further upgrading of workers’ housing, improving access to healthcare by establishing clinics in remote areas, upgrading facilities to provide uninterrupted water supply and electricity in areas that do not have access to the national power grid and state-provided water supply, implementing FGV’s e-Wallet system for more convenient salary payment and cashless transactions, and establishing FGV mobile shops to provide regular access to fresh food supplies. On 16 November 2021, the Group has appointed Elevate Limited (“Elevate”) as the independent auditing firm to conduct an assessment of FGV’s operations against the 11 International Labour Organization (“ILO”) Indicators of Forced Labour. The assessment was part of the Group’s efforts towards petitioning for the revocation of the WRO by the CBP. Elevate is an independent sustainability and supply chain service provider with vast experience in advancing social compliance and addressing forced labour risks by applying a worker-centric approach. On 28 February 2023, the Group issued a press release stating that Elevate has concluded its on-site assessments and the Group is implementing Elevate ‘s recommendations and anticipates submitting the final report to CBP in the near future. Aligned with the Group’s No Recruitment Fees policy, the Group will reimburse its current and former foreign workers, who were employed after 27 June 2019 and had to pay recruitment fees to agents or other third parties in their countries of origin. The payment to the foreign workers will be made in three tranches between March and September 2023. 58 APPROVAL OF FINANCIAL STATEMENTS The financial statements have been approved for issue in accordance with a resolution of the Board of Directors on 29 March 2023.
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