Unico minorities plan legal action

  • Business
  • Friday, 10 Oct 2008

KUALA LUMPUR: Minority shareholders of Unico Holdings Bhd, led by Tan Kai Hee, plan to take legal action against six directors or former directors of the company later this month.

Tan, a former director of Unico Holdings, told StarBiz yesterday the legal action was to support a suit filed by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) on Wednesday.

The ACCCIM had filed the suit at the Kuala Lumpur High Court against the directors and former directors of Unico Holdings and Unico-Desa Plantations Bhd. Unico Holdings is a major shareholder of Unico-Desa.

The ACCCIM is suing the said directors for alleged breach of trust and violation of the original objectives of setting up Unico Holdings and Unico-Desa. ACCCIM was the founder of Unico Holdings.

It also alleged that these directors and former directors had tarnished the image and credibility of ACCCIM and infringed on the rights and benefits of ACCCIM and Unico Holdings’ minority shareholders.

The ACCIM said it had originally planned to file the legal action in July.

However, it decided to delay the plan to allow a third party to mediate in the dispute.

But since the dispute could not be resolved, it decided to take legal action.

Tan said the proposed suit by the minority shareholders was mainly to seek compensation over their losses from the disposal of their shares.

“The minority shareholders had sold the shares because they were not happy with the six directors or former directors of Unico Holding over their management of the company, which in turn affected Unico-Desa,” he said.

 UNICO :  [Stock Watch]  [News]

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