• Court denied injunction sought by former director
• Company terminated agreement with former director
• Court ordered former director to pay company's legal costs

Structural Monitoring Systems Plc ('SMS' or 'the Company') (ASX:SMN) provided an update on court proceedings brought against the company and certain other parties. The Federal Court of Australia ('Court') has issued a decision not to grant an injunctive order ('Injunction') that was sought to apply until the court hears and determines the claim. A temporary injunction that was in place while the Court decided about the Injunction application has now been removed. Following the Court's decision, the Company resolved that Mr Ross Love be removed as a director and the agreement with Turton House Group Pty Ltd (THG), through which Mr Love is engaged, be terminated as well. Additionally, the Court ordered that Mr. Love and THG pay the Company's costs incurred in connection with the Injunction. The Board had previously engaged an independent third party to conduct a workplace investigation into allegations made by the People & Culture Director at the Company's Canadian subsidiary, Anodyne Electronics Manufacturing Corporation (AEM). The investigation concluded that most of the allegations were substantiated. After careful consideration, the Board determined that it was in the best interests of the Company to terminate Mr. Love's Executive Services Agreement. The Proceedings will otherwise be continuing, and the other allegations by Mr. Love and THG, including with respect to adverse action and whistleblowing claims, are yet to be heard by the Court. The Company denies any of the allegations and will continue to vigorously defend against the Proceedings.