KUALA LUMPUR: Cahya Mata Sarawak Bhd
(Cahya Mata) is facing a legal dispute involving its own deputy group chairman/director, Datuk Seri Mahmud Abu Bekir Taib (DSM), who has filed an originating summons against the company and 10 other parties at the High Court of Sabah and Sarawak.
In a filing on April 7, Cahya Mata said the summons, dated April 2, was served on the group on April 6. Mahmud is seeking several declarations relating to his rights as a director, particularly in relation to his participation in board meetings amid ongoing legal disputes involving the company.
Among others, Mahmud is seeking a declaration that he should only be considered to be in a conflict-of-interest position when specific ongoing court cases are being deliberated at board meetings, and not otherwise. He is also seeking affirmation of his “unrestricted right” to attend and participate in board meetings, with recusal required only when the relevant legal matters are tabled for discussion.
The suit further challenges his exclusion from the company’s 328th board meeting held on Feb 24, 2026, which he claims was “unlawful, null and void.” Mahmud is also seeking an injunction to prevent the company and other defendants from excluding him from future board meetings, except under defined circumstances.
In addition, he is requesting access to board meeting minutes between April 2025 and January 2026, as well as measures to ensure that agendas clearly identify when matters requiring his recusal will be discussed.
Cahya Mata said its position is that conflicts of interest do exist, citing ongoing legal proceedings between Mahmud and the group, including an earlier originating summons filed by Mahmud and a separate suit initiated by the group and its subsidiary against him and others.
The company said it is in the process of appointing solicitors and will “vigorously defend” the action to safeguard its interests.
Cahya Mata added that the legal action is not expected to have a material impact on its earnings, net assets or operations for the financial year ending Dec 31, 2026.
In a separate filing on the same day, the group also announced that Mahmud has been redesignated from deputy group chairman to a non-independent, non-executive director with immediate effect.
