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Update on Extraordinary General Meeting July 23, 2019

August 12, 2019

Dear Church Family,

Recently, on July 23, 2019, the Executive Members (EMs), who are the voting members in CHC, gathered at an Extraordinary General Meeting (EOGM). During that meeting, an important resolution was passed regarding the civil suit against AMAC Capital and Chew Eng Han. We wanted to give you some information about how we arrived at the final decision.

Please allow us to provide you with some background history.

During the Annual General Meeting (AGM) on June 2, 2019, the Board presented to the EMs the then status of our civil suit with AMAC Capital (AMAC) and Chew Eng Han (CEH).

This civil suit arose after CHC tried, without much success, to recover money from outstanding investments made with AMAC in 2009-2010. CEH had provided a personal guarantee for AMAC’s debt to CHC arising from these outstanding investments. AMAC then defaulted on the extended deadlines and attempts to negotiate with AMAC and CEH to reach a mutually-agreed settlement were unsuccessful. Hence, CHC had no option but to commence legal action against AMAC and CEH in October 2014 in an attempt to recover its investments.

Also, in 2014, our auditors took into consideration the long period of non-payment and the likelihood of not being able to recover the outstanding investments. Therefore, that year, CHC decided to fully impair the amount owed.

In September 2017, CHC obtained a court Judgment against AMAC and CEH for the full sum of its claim plus interest (as at when the Writ was filed, in 2014), which amounted to approximately S$21 million. Subsequently, CHC took out examination of judgment debtor (EJD) proceedings against AMAC and CEH in an attempt to ascertain if there are any assets to satisfy the Judgment. However, before this process could be completed, CEH was incarcerated and the EJD proceedings were then discontinued.

During the June 2 AGM, the Board presented that CHC’s Judgment remains outstanding, and it was necessary to come to a decision on our next course of action. While the Board is empowered in the Church Constitution to make a decision regarding this, due to the large financial amount involved, the Board deemed it necessary for the EMs to take a vote on the matter.

After much deliberation, the EMs jointly agreed with the Board to take a month to pray before deciding what the next course of action should be. The EMs also requested the Board to prepare a presentation on what would be both a biblical and a responsible option regarding this decision.

The Board and the EMs met a month later in July for an EOGM, and the final options were summarized as follows:

Option #1: Cease all recovery efforts and give up all rights forever.
Option #2: Pursue all avenues to recover the sums due to CHC with accrued interest.

Before the vote was passed, the Board presented the following implications and biblical perspectives for both options.

Option #1: Cease all recovery efforts and give up all rights forever.

In this option, CHC writes off the debt owed by AMAC and CEH, thus closing this chapter behind us and putting a stop to any further time, effort and money spent on this issue. This alternative represents a permanent loss of the principal sum of $16.3M and the accrued interest of $10.16M as of December 31, 2018. The total amount written off would be $26.46M.

Biblically, this option demonstrates forgiveness and mercy. We read this in the Parable of the Unforgiving Servant in Matthew 18:21-35.

  • The master forgave the servant of a huge debt, but the servant would not let go of a smaller debt, which his fellow servant owed him.
  • The master said: “Should you not also have had compassion on your fellow servant, just as I had pity on you?’” (v.33)
  • Here, we see the Christian virtue of forgiveness and mercy in the letting go of the debt owed.

Option #2: Pursue all avenues to recover the sums due to CHC with accrued interest.

In this option, CHC pursues all avenues toward potential recovery of some monies (up to $26.46M), which could possibly result in liquidating AMAC and/or bankruptcy for CEH. The possibilities are not exhaustive and our lawyers have advised that potential legal costs may range from $30,000 to more than $350,000. In addition, this option requires time and effort spent with uncertain or possibly zero returns.

Biblically, this option stems from stewardship, as found in the Parable of the Bags of Gold in Matthew 25:14-30.

  • The master gave bags of gold to the servants and returned to hear what was done with the bags of gold. “After a long time the master of those servants returned and settled accounts with them.” (v.19)
  • The servants are held accountable to the wealth entrusted to them. As such, the servants have to do whatever they can to be faithful with the bags of gold. “Moreover it is required in stewards that one be found faithful.” (1 Cor. 4:2)
  • Here, we see the Christian virtue of being a faithful steward of what the Lord has put in our hands.

The Board assured the EMs that both options were good, each backed by biblical principles that we believe in strongly. The Board and EMs then took on our responsibility as voting members of this house of God and voted anonymously via an electronic voting system.

Here are the results:
Option 1: 50.6%
Option 2: 47.6%
Abstained: 1.8%

Hence, in the matter of the civil suit with AMAC and CEH, the Executive Members have mandated the Board to cease all recovery efforts and give up all rights forever to the amount owed to CHC by AMAC and CEH.

We are grateful to all the EMs for the hours of honest and open discussion, and for taking the time to seek the Lord and pray before making this decision. We are thankful to the Lord that we have concluded this matter and we look forward to all that God has in store for us in the years to come.

Thank you for your love for this house and for being a part of this precious family. We ask for your continued prayers for wisdom and grace as we lead the church.

In Christ,

The Management Board
City Harvest Church

If you have any queries about this matter, or require further information, please send your questions to agm@chc.org.sg.

Updated August 15, 2019