Investor Notice: Syscoin Foundation Files Statement of Defence in Dutch Courts to Prevent Illegal Removal of Board Members Following Investigation into Financial Misconduct

Syscoin Stichting Syscoin Foundation, represented by Board Members Willy Ko and Bradley Stephenson, hereby announces that it has filed a Statement of Defence in Dutch Courts following an investigation into financial misconduct by the Syscoin Foundation, which contains a counterclaim against Mr. Jagdeep Sidhu, Mr. Michiel Näring and Mr. Chris O’Shea. The action is pending before the District Court of East Brabant in the city of ‘s-Hertogenbosch, Netherlands, under case number 07588EXRK24-127.

Case Background

The System Coin Foundation is taking legal action against Jagdeep Sidhu, Michiel Näring and Chris O'Shea for attempting to maliciously remove or suspend current board members Willy Ko and Bradley Stephenson in violation of the System Coin Foundation's charter. The System Coin Foundation believes the three's actions are illegal and plans to challenge them in court.

Sidhu, Näring and O'Shea's actions may be intended to use funds from the non-profit System Coin Foundation to continue to fund their for-profit company SYS Labs, of which Sidhu, Näring and O'Shea are shareholders and directors. Ko and Stephenson, as whistleblowers, took the initiative to raise issues of conflicts of interest and financial mismanagement by the three directors. The System Coin Foundation has requested records and information about the use of these funds from the three, but has not received a response to date. Instead, Sidhu, Näring and O'Shea have also been trying to remove or suspend board members Ko and Stephenson, who have no conflict of interest.

However, according to Article 8(f) of the Foundation's Articles of Association, the Foundation's Board of Directors can remove a director by a two-thirds majority vote, and this resolution cannot be reached without four of the five directors voting in favor. In addition, according to the Articles of Association and Dutch law, a resolution to suspend a director also requires a two-thirds majority vote, and the votes of Sidhu, Näring and O'Shea are not sufficient to form a resolution.

Statement from Willy Ko: "Evidence shows that foundation funds were used to support and exploit Jagdeep, Michiel, and Chris' own for-profit company, SYS Labs. There is a clear connection between this conflict of interest and the mismanagement of foundation funds. First of all, let me publicly state that I will not vote to suspend or remove Bradley Stephenson, a member of the Syscoin Foundation board, nor will I resign from my board position. We will fully defend the Foundation and the community."

Statement from Bradley Stephenson: "In this ongoing legal battle, Willy and I will defend the Syscoin Foundation against Jag, Michiel, and Chris' attempts to remove or suspend me from the Foundation's board. At the same time, I will not vote to remove or suspend board member Willy Ko, nor will I resign from my board position."

About the Syscoin Foundation

The Syscoin Foundation was established in 2018 as a non-profit organization represented by Syscoin's core development team, dedicated to maintaining the code base and overseeing public relations for the protocol. The goal of the System Coin Foundation is to promote the global application of blockchain technology through its unique decentralized features.

This article comes from a contribution and does not represent the views of BlockBeats

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