KUALA LUMPUR (Jan 13): Apex Equity Holdings Bhd (KL:APEX) said its executive chairman, Datuk Wira Farhash Wafa Salvador, is seeking a court order to get the company to replace its memorandum and articles of association (M&A) with a new constitution, to comply with Bursa Malaysia's listing requirements.

Farhash said the lawsuit at the High Court is brought in the best interest of Apex, according to the stockbroker and property developer in an exchange filing on Monday.

The chairman noted in an affidavit that it is not practicable to adopt or amend the M&A in its entirety and substitute it with a new constitution using the procedure set out in the M&A, added Apex.

Farhash, a former political aide to Prime Minister Datuk Seri Anwar Ibrahim and the former PKR Perak chief, was appointed to Apex’s board in December 2022. He holds a 1.79% stake in the company.

He is also the executive chairman of Main Market-listed Excel Force MSC Bhd (KL:EFORCE), holding a 0.82% stake in the financial services business solutions provider.

In the suit against Apex, Farhash said the company had attempted to comply with Bursa Malaysia’s direction to adopt a new constitution and compliance with the listing requirements by holding seven general meetings

"But on all occasions the collective minority has defeated the proposed resolution," the company cited the chairman as saying in his affidavit.

He added: “Apex has done all that is necessary to appease any objections taken in respect of the matters raised by the shareholders, yet in the last four general meetings, the adoption of the proposed constitution was refused and/or rejected without any valid or substantiated reason.

“Apex has also engaged the relevant shareholders who have continuously opposed the adoption of their constitution despite Apex’s best efforts to address their concerns.

"The circumstances have effectively created a deadlock."  

Apex said Farhash has been advised that the inability to approve the constitution as directed by Bursa Malaysia may expose Apex to penalty or sanction.

The company, however, does not expect any financial and operational impact from the suit at this juncture, except for legal fees.  

Shares of Apex Equity settled up 5.5 sen or 6.08% at 96 sen on Monday, giving the company a market capitalisation of RM203.89 million.