KUALA LUMPUR (Oct 19): Caely Holdings Bhd said it has filed a suit against its founder and former executive director Datin Fong Nyok Yoon, her husband and former managing director Datuk Chuah Chin Lai, and 10 of its ex-directors over the alleged misappropriation of RM30.55 million of its unit’s funds.

The other defendants named in Caely’s suit are the company’s former chairman Datuk Wira Ng Chun Hau and former board members Siow Hock Lee, Ooi Say Teik, Hem Kan @ Chan Hong Kee, Ng Boon Kang, Tan Loon Cheang, Lim Chee Pang, Lim Say Leong, Beh Hong Shien and Gok Ching Hee.

“The cause of this action arises from the misappropriation of funds of not less than RM30.55 million from Caely (M) Sdn Bhd (CMSB), conducts of non-disclosure of the systematic misappropriation, fraudulent concealment, conspiracy, fraud and deception, breach of directors’ duties arising from or related to the systematic misappropriation,” the Perak-based lingerie and apparel maker said in a filing with Bursa Malaysia on Wednesday (Oct 19).

Together with its unit, Caely is seeking, among others, RM30.55 million in special damages, as well as general damages with exemplary damages deemed appropriate to be awarded by the court. 

The suit comes just a day after Chun Hau announced that he has filed a defamation suit in the High Court against the troubled company and its new board, over defamatory statements in connection with the RM30.55 million misappropriated funds.

Chun Hau is seeking damages for libel, with aggravated and exemplary damages against Caely and its board of directors.

On Oct 6, Caely had lodged a police report against these same 12 former board members over the alleged misappropriation of funds during their tenure.

Caely shared that it had, in the police report, expressed its suspicions that there was an effort to cover up related irregularities by the previous board.

“This is because although a forensic investigation has been initiated by the previous board (led by Chun Hau) through the appointment of Virdos Lima Consultancy (M) Sdn Bhd in April, the previous board had failed to cooperate fully, abruptly resigned and [there] appeared to be an attempt to thwart any necessary legal investigation.

“The appointment of Virdos Lima by the former board shows that the members at that time were aware of the said irregularities. As such, Caely had requested that the police investigate the elements of crime and misconduct that have caused losses to Caely, and also the concealment of such wrongdoings by the members of the previous board,” it added.

Shares of Caely ended unchanged at 28 sen on Wednesday, giving the company a market capitalisation of RM72.31 million.