KUALA LUMPUR: A suit has been filed in the Penang High Court to annul the Multi-Usage Holdings Bhd
(MUH) AGM held on Monday, where three directors were voted out, and to cancel all resolutions that were approved.
The property developer and precast concrete product maker told Bursa Malaysia that it received on Wednesday an originating summons filed in the Penang High Court on June 26 (the AGM was on June 29) by a group of 11 individuals, including top 30 shareholders Lim Seng Hin and Lee Chan Sam, against MUH, its three joint company secretaries and secretarial services provider Boardroom Corporate Services (Penang) Sdn Bhd.
The plaintiffs also want a fresh AGM held within 30 days from the date of the court order and that the resolutions they proposed in a written requisition dated April 27 (to nominate four persons for election as directors) be tabled.
The irony is that three members of the board of directors that had rejected their requisition were removed at the AGM that they are now seeking to declare invalid. These three directors, who were up for re-election, were chairman Abd Aziz Mat, Cheah Chin Huat and Ang Hwei Chyn.
Shareholders holding 86.89% of voting shares also rejected the payment of directors’ fees amounting to RM119,250 for the year ended Dec 31, 2014.
The 11 plaintiffs also seek compensation from MUH directors and the secretaries, and want the costs of the proceedings be paid by them.
The grounds for the originating summons are as contained in the Affidavit of Cheah Chian Chong, but it was not mentioned in the announcement.
The court has fixed July 28 to hear the application of the plaintiffs.
MUH said its board would seek legal opinion on this matter and further announcement(s) to Bursa Malaysia Securities Bhd on any material development would be made in due course.
Last year there was an attempt to propose an EGM to remove MUH’s directors but the directors filed a suit to declare the EGM illegal amd invalid.
MUH’s group managing director Ang Kim Cheng @ Ang Teng Kok and the other directors claimed, among others, that the individuals named as defendants and Topazvest Temasek Sdn Bhd (which is MUH’s single largest shareholder with a 27.17% stake) were parties acting in concert to gain control of the voting rights in MUH and/or they failed to make a mandatory general offer.
That suit is scheduled for full trial on Aug 17 and 18.
Multi-Usage shares fell 7 sen to close at RM1.24 on Thursday.
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