KUALA LUMPUR (Feb 9): EVD Bhd’s suspended executive director of operations and largest shareholder Mah Seong Huak has filed a lawsuit against the transport system solutions company, claiming it had made a defamatory statement against him in a filing with Bursa Malaysia last month.
Also named as defendants in the suit are EVD's co-founder cum executive director of corporate Gan Wee Peng, chairman Datuk Dr Syed Muhamad Syed Abdul Kadir and independent and non-executive director Hon Hin See, the company said in a filing on Friday.
“The plaintiff (Mah) claimed that the defendant (EVD) had published or caused to be published on Bursa Malaysia's website on Jan 11, a publication containing words that are defamatory,” the company said.
Mah, who holds a 27.06% stake in the company, is seeking damages of RM25 million from the defendants, as well as aggravated damages and exemplary damages as assessed by the court.
The suit is fixed for case management on March 11 via e-review, said EVD, adding that it is seeking legal advice on defending the case or resolving the matter.
In its filing on Jan 11, EVD said its board had decided to temporarily relieve Mah’s operational duties in his capacity as an employee of the company overseeing the day-to-day executive management functions with immediate effect.
The company did not disclose any reason for the suspension.
Meanwhile, on Jan 24, Mah sought for an extraordinary general meeting of the company to remove four of its directors, namely Syed Muhammad, Gan, Hon and Lee Chi Hoe.
Mah proposed the appointment of three other individuals as directors, namely Kvin Lim Chun Keat, Ibrahim Maidin and Tee Chun Yeh.
In its filing on Friday, EVD said the financial impact of the lawsuit on the company would be limited to the amount awarded by the court and the legal cost incurred to defend EVD. It added that the suit would have no impact on its operations.
Shares of EVD finished half a sen or 4.35% higher at 12 sen on Friday, valuing the company at RM50.34 million.