KUALA LUMPUR (July 6): Sersol Bhd has been served with a court order that restrains its executive chairman cum managing director, chief executive officer, an executive director and five independent directors from exercising their powers.

In a Bursa Malaysia filing on Thursday (July 6), Sersol said the ad-interim order issued by the High Court is valid until July 17, when an injunction application is fixed for hearing and an originating summons is fixed for case management.

The injunction application and originating summons were filed by Sersol’s independent director Leong Lup Yan, 53, and executive director Tan Fie Jen, 57. Leong and Tan commenced action against the company on June 23.

They sought a declaration that the undated resolution to appoint executive director Mohamad Sirajuddin Jali, 36, and independent director Ramesh Kanapathy, 54, on June 20, and another undated resolution to appoint independent directors Tunku Azlan Tunku Aziz, 54, and Muhammad Syazni Mohd Zaki, 33, on June 22, are null and void.

Leong and Tan also sought an order that Sersol will rectify the company’s register of directors within seven days from the date of such order, and any other relief that the court may think just and expedient.

Sersol, which manufactures paints and chemical solvents, said it was served with the originating summons and injunction application on June 27.

The defendants are Sersol’s executive chairman and managing director Datuk Lim Tiong Siang, 77, Tiong Siang’s son and Sersol CEO Datuk Justin Lim Hwa Tat, 47, Mohamad Sirajuddin, independent directors Shazreen Mohd Hatta, 46, Sia Meng Chan, 58, Ramesh, Tunku Azlan, Muhammad Syazni,  former executive director Chan Gee Wah, 55, and the company itself.

Tiong Siang and Justin were only appointed to their positions on June 15. Justin was previously Sersol’s executive managing director, a position he held since Aug 5, 2021. Chan resigned as executive director on June 20 “due to personal commitment”.  

As of June 15, Justin is a major shareholder of Sersol, owning a 13.847% direct stake. He is also an executive director at SMTrack Bhd, previously an independent director at Appasia Bhd and an executive director at Computer Forms (M) Bhd.

Sersol said in filings on June 16 that Justin’s re-election as director was withdrawn or postponed, while Tan’s and Shazreen’s re-election was accepted, at a shareholders' meeting.

The filings also showed that Tan had disposed of his entire stake in Sersol on Dec 19, 2022 via the open market. He has been trimming his stake since Nov 25, 2022, at that time from a 0.853% direct stake.

His wife Tan Chiew Ngee had on Aug 11, 2021 disposed of all her stake (600,000 shares or 0.256%) in Sersol at 40 sen per share. She acquired her stake on Aug 6, 2021 at 29 sen per share via the exercise of a share issuance scheme.

According to Bloomberg, Sanston Financial Group is Sersol’s largest shareholder with a 25.95% stake, followed by Justin.

Sersol shares closed unchanged at 12 sen on Thursday, valuing the group at RM87.8 million. The counter has fallen 54.72% since reaching an all-time high of 26.5 sen on Jan 11.