Bebas Muflis secretariat chairman Datuk Sohaimi Shahadan
KUALA LUMPUR: A boardroom tussle has surfaced at loss-making EKA Noodles Bhd, with new substantial shareholder Vibrant Class Sdn Bhd and two other shareholders seeking to remove all board members except for group managing director and largest shareholder Datuk Seri Chin Seak Huat.
In a filing with Bursa Malaysia, the noodle manufacturer said Vibrant Class Sdn Bhd, which last month emerged as the second biggest shareholder with an 8.97% stake, together with Law Chong Kai and Fong Yit Meng had requested for an EGM to remove the directors and appoint seven new directors.
The resolutions include the removal of chairman Datuk Sohaimi Shahadan, executive director Ahmad Zaffry Sulaiman, director Yee Yit Yang and director Raja Nazrin Raja Ghazilla as well as any other person appointed director following the last AGM in May 2016.
The requisitionists also seek to appoint Chan Soo Yean and Fong Yit Meng as executive directors, and Khairilanuar Tun Abdul Rahman, former Metronic Global Bhd
group MD Datuk Chin Yew Sin, Leong Woay Hong@Neoh Woay Hong, Law Chong Kai and Lim Choo Hooi as non-executive directors. Khairilanuar, who is a major shareholder through Vibrant Class Sdn Bhd, is proposed also for the chairman post.
EKA Noodles has given notice to shareholders for an EGM in Sungai Petani on Feb 6 to consider the resolutions.
EKA Noodles said the board would convene a board meeting to discuss whether the intended EGM was “legal, valid and proper in form and in substance.”
The company would also engage professionals to advise the board of directors accordingly, it added.
EKA Noodles incurred losses before tax of RM15.5mil for the 18-month financial period ended Dec 31, 2015 -- a smaller loss compared with RM37.2mil for the preceding financial year ended June 30, 2014. For the first nine months of last year, the company continued to suffer losses (unaudited pre-tax loss of RM14.52mil).
EKA Noodles triggered the Practice Note 17 criteria in August last year as its shareholders’ equity on a consolidated basis was 25% or less of its paid-up capital and was less than RM40mil in its unaudited interim financial results for the second quarter ended June 30, 2016.
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