Sunday 19 May 2024
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KUALA LUMPUR (March 26): One of the parties seeking to wrest control of South Malaysia Industries Bhd (SMI) has made an eleventh hour attempt to postpone SMI's annual general meeting scheduled for Wednesday.

Honsin Apparel Sdn Bhd had on Tuesday served SMI with an originating summons together with a notice of application for an interlocutory injunction, according to SMI's bourse filing, adding that the matter has been fixed for hearing on Wednesday.

SMI said Honsin is seeking to postphone the AGM indefinitely until the disposal of the originating summons, or alternatively for the meeting to address the scheduled matters and after that adjourn indefinitely.

On Dec 19, 2023, Honsin, along with HIQ Media (Malaysia) Sdn Bhd, applied to challenge the extension granted to SMI by the Companies Commission of Malaysia for holding the AGM.

Previously, Honsin had expressed its intention to nominate Hong Zheng Hong and Tan Eng Gooi as directors at the AGM, which SMI has since declined.

Apart from Honsin, SMI has also convened an emergency meeting in response to a writ of summons and an interim injunction notice served by Mah Sau Cheong on March 20.

The legal proceedings initiated by Mah aim to suspend the resolutions proposed by Honsin and Chong Fu Shen at the forthcoming AGM, casting uncertainty over SMI's future leadership.

Chong, who holds a 0.7% stake in SMI, has indicated his interest in joining the board, alongside Lum U-Jun, Chong Fu Chih and Loo Choo Hong.

Mah also seeks to restrain Datuk Au Yee Boon and his associates from affecting the appointment or dismissal of directors until the matter is settled.

SMI has said that its board, in agreement with its legal advisors, has decided to uphold the status quo until the court rules on the pending proposals.

Mah is the principal shareholder of Asian Pac Holdings Bhd with a 32% stake and also directly owns 7.65% of SMI. Asian PAC Holdings in turn is SMI's largest shareholder with a 2.25% direct stake and a 9.3% indirect shareholding.

Shares of SMI closed 1.5 sen lower or 2.59% at 56.5 sen on Tuesday, giving it a market capitalisation of RM118.62 million.

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Edited ByS Kanagaraju
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