Stone Master directors assume positions after court decision

KUALA LUMPUR: Eight new directors of Stone Master Corp Bhd have assumed their positions on the company’s board of directors after a High Court decision to set aside an ex-parte injunction in relation to the company’s EGM last month.

The company also confirmed on Wednesday that former managing director, Datuk Koh Mui Tee and former executive director Datuk Lee Hwa Cheng had been removed from the board and the company.

The new directors are Ma Jee Choong, Datuk Abdul Aziz Mohamed, Low Eng Tack, Ng Boon Siong, Tan Wee Hock, Ananda Kumar Ramayah, Foo Chooi Wai and Leong Kam Soon, who were were elected during the EGM.

The announcement is following a decision by the Kuala Lumpur High Court to set aside the ex-parte injunction order to Stone Master in relation to the company’s EGM on May 30, 2017. 

During the EGM, 91.48% of the shareholders who attended the meeting, had voted for all the resolutions. In a statement, the company said 58% voted in favour of the resolutions, which included the appointment of the new directors and the removal of Koh and Lee.

“An injunction of the EGM was granted ex parte on June 2, 2017 to Stone Master through an application by Datuk Koh in an attempt to prevent the implementation of the resolutions passed at the EGM. “Subsequently, an application to set aside the ex parte order was then carried out by Datuk Karen Lee, stating that the ex parte order was granted through non-disclosure of material facts and misrepresentations,” it said.

Lee is the Company’s single largest shareholder and vice president of Stone Master.

The High Court has also fixed for an inter parte hearing for the injunction on August 1, 2017. “Nevertheless, as of today, there are no further injunctions preventing Stone Master from implementing all the resolutions passed at the EGM,” it said.

On February 8, 2017, Stone Master’s external auditors, Messrs Baker Tilly Monteiro Heng, expressed a qualified opinion on the company’s audited financial statements for the financial year ended Sept 30, 2016. 

This was due to a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.

The external auditors also recommended that an investigative audit be commissioned to obtain explanations on the Securities Commission’s suit against the company’s former deputy managing director, Datin Chan Chui Mei, for allegedly causing wrongful loss to the company.