TYC Brother Industrial : Announced the Emergency Arbitration Award to the Company's Application of Emergency Relief Based on Transition Management Agreement.
Announced the Emergency Arbitration Award to
the Company's Application of Emergency Relief
Based on Transition Management Agreement.
Date of events
2022/08/16
To which item it meets
paragraph 51
Statement
1.Date of occurrence of the event:2022/08/16
2.Company name:T.Y.C. Brother Industrial Co., Ltd.
3.Relationship to the Company (please enter "head office" or
"subsidiaries"):head office
4.Reciprocal shareholding ratios:NA
5.Cause of occurrence:
1.Parties:
Claimants: TYC BROTHER INDUSTRIAL CO., LTD. and Beste Motor Co. Ltd.
Respondents: VARROCCORP HOLDING BV and VARROC ENGINEERING LIMITED
2.Court or Competent Organization:
Singapore International Arbitration Centre (SIAC)
The Company, through its subsidiary Beste Motor Co. Ltd., and VarrocCorp
Holding BV (which is the subsidiary of Varroc Engineering Limited, an
Indian listed company) jointly formed the joint venture Varroc TYC
Corporation with a 50/50 shareholding arrangement and signed a
Shareholders Agreement. Varroc TYC Corporation is an OEM of
automobile lamps operating in mainland China through its subsidiaries,
Varroc TYC Auto Lamps Co., Ltd. and Chongqing Varroc TYC Auto Lamps Co., Ltd.
Since 2019, the parties have had ongoing disputes over the business
philosophy of the joint venture company. At the end of 2019, the parties
discussed the separation of the joint venture company, and reached a
preliminary consensus that Varroc TYC Auto Lamps Co., Ltd. shall be
obtained by the Company, and Chongqing Varroc TYC Auto Lamps Co.,
Ltd. shall be obtained by Varroc. Accordingly, both parties signed a
Transition Management Agreement and Confidentiality Agreement to
facilitate the parties' negotiation of the terms of the potential separation.
The Claimants submitted the case to SIAC for arbitrations based on the
Respondents' breach of the Transition Management Agreement and
Confidentiality Agreement to claim for specific performance and damages
caused, and applied for consolidation of the arbitrations as well as
emergency interim relief under the Transition Management Agreement.
The emergency arbitrator has made an emergency arbitration award and
dismissed the Claimants' application for emergency relief. This was a
decision on the emergency interim relief sought by the Claimants. It does
not determine the disputes under these arbitrations, which shall be made by
the tribunal to be constituted. The Claimants are also entitled to apply for
the same, similar, or further interim relief before the tribunal, once
constituted.
6.Countermeasures:
The Company has retained attorneys to respond accordingly. The Company
will track progress of the arbitration(s) to protect the rights of the
Company's shareholders.
7.Any other matters that need to be specified:
(1)The Company has retained Lee and Li Attorneys-at-Law and Singapore
attorneys to handle the case.
(2)The case does not have material impact on the Company's finances or
operations.
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Disclaimer
TYC Brother Industrial Co. Ltd. published this content on 16 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2022 08:01:09 UTC.
T.Y.C BROTHER IND. CO., LTD. is a Taiwan-based company principally engaged in the manufacture, processing and distribution of automobile parts. The Company provides automobile lamps, motorcycle lamps, automobile mirrors, air conditioning blowers, cooling fan assemblies, condensers, radars, starters, alternators, cabin air filters, window regulators and others. In addition, it provides energy saving lighting products. The Company mainly distributes its products to overseas markets, including the Americas, Europe, other Asian markets and others.
TYC Brother Industrial : Announced the Emergency Arbitration Award to the Company's Application of Emergency Relief Based on Transition Management Agreement.
TYC BROTHER INDUSTRIAL CO., LTD. 
