GPlus shareholders upset

  • Nation
  • Sunday, 27 Jan 2008

KUALA LUMPUR: Shareholders of Golden Plus Holdings Bhd (GPlus), which is embroiled in a boardroom tussle, were disappointed yesterday as they had expected an EGM to take place. 

GPlus’ board of directors had cancelled an EGM in Kuala Lumpur after the Shah Alam High Court on Friday ruled in their favour to stop another EGM from being held on the same day in Penang.  

However, these shareholders had not read the announcement on Bursa Malaysia on Friday night or read about it in the newspapers yesterday. At one point, they became unruly. “We will talk to you when the time is right and issues have been resolved,” director Jeyaraj Ratnaswamy said.  

Jeyaraj explained that there was no need for an EGM in Kuala Lumpur to proceed, as it had only one resolution to table and that was to decide on the validity of the EGM in Penang. 

The EGM in Penang was requisitioned by two new shareholders in a bid to remove GPlus’ existing directors and replace them with their own nominees. 

Jeyaraj said GPlus’ incumbent directors were willing to offer seats in the boardroom to the new shareholders, but wanted the lifting of the court injunction against a unit involved in the flagship Royal Garden project in Shanghai. 

He added the court order filed in Hong Kong had “severely disrupted” construction work at the Royal Garden project, for which the third phase had to be completed by year-end or risk losing the project. 

The injunctions obtained in Malaysia and Hong Kong late last year “put the brakes” on the project agent, China Idea Development Ltd (CIDL), from selling or managing properties belonging to The Royal Garden in Shanghai. 

To a question, he said GPlus might consider the sale of the project, if the price were right. 

The multi-billion ringgit residential development is the subject of the on-going public tussle for control of the board between its current directors and a group of shareholders, Indian Corridor Sdn Bhd, which holds 18.6% of GPlus. 

Golden Plus had already turned in a healthy profit in the three months ended Sept 30, 2007 - its first quarterly earnings after seven straight quarters of losses with the bulk of its income from the Royal Garden project.  

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