KUALA LUMPUR (Nov 22): The largest shareholder of South Malaysia Industries Bhd (KL:SMI) has called for an upcoming extraordinary general meeting (EGM) scheduled for Jan 9, 2025, to appoint six new directors to the company’s board, including former Perak police chief Datuk Pahlawan Mior Faridalathrash Wahid.

The resolutions to appoint the directors were initiated by Velocity Capital Sdn Bhd on behalf of Target 1 Sdn Bhd which owns a 30.67% stake in the company, the property developer cum wiring manufacturer said in a filing on Friday.

Target 1, which is controlled by Leong Seng Wui, emerged as the largest shareholder in SMI after it acquired shares on the open market (15.52%) and off-market trades (15.15%) in the months of May and June this year. Leong is an executive director (ED) of Hong Seng Consolidated Bhd (KL:HONGSENG) and cash-strapped Revenue Group Bhd (KL:REVENUE).

The notice of resolutions wanted to appoint Mior as an ED, while another five candidates as non-independent and non-ED, namely She Pei Sze, Lee Keng Fatt, Datuk Sok One Esen, Ho Pui Hold and Leong Weng Loong — all with an immediate effect.

However, SMI said that the notice of the EGM has not yet been circulated to shareholders, thus, no EGM will be convened until such a notice is issued.

In addition to the resolutions, SMI was ordered to refrain from taking any actions that could hinder or disrupt the EGM, initiate any legal proceedings to prevent the EGM, as well as appoint new directors until the EGM was convened.

SMI said they will hold a board meeting on Nov 28 to discuss this matter.

“The board would also engage legal counsels and seek a legal opinion before any decision can be taken on the next course of action,” it said.

Shares of SMI settled up half a sen or 1.2% to 42 sen on Friday, giving the group a market capitalisation of RM88.17 million.