KUALA LUMPUR (March 27): The board of directors of HHRG Bhd (KL:HHRG) has decided against convening an extraordinary general meeting (EGM) requisitioned by its largest shareholder Cfamillie Holdings Sdn Bhd to remove the board of directors of the company, and has filed a legal suit to stop it from being convened.

The Edge reported last Thursday (March 20) that Cfamillie was behind the requisition to remove the board of directors of the Penang-based biomass material manufacturer, and is still the ultimate owner of the shares registered under Digital Trustees Bhd (DTB), which emerged as the largest shareholder in the company on March 17, 2025.

DTB purchased its 16.05% stake in HHRG via an off-market deal on March 11.

This was the same day Cfamillie, according to Bloomberg data, sold its entire stake in the company at a significant loss.

Three days later, on March 14, DTB requisitioned an EGM to remove the entire board of HHRG, and to appoint three new directors.

The announcement on DTB’s shareholding in HHRG was made on March 17, the same day the company announced the requisition notice for EGM to remove to remove all five of HHRG’s directors: its executive deputy chairman Datuk Paduka Ammar Datuk Shaikh Mahmood Naim, and Guok Ngek Seong, Abdul Rahman Din, Chan Hon Woo and Ju Siew Lee.

DTB is nominating three directors for appointment to replace the board — Zam Azri Mohamed Zam Zamil, Dr Mazlan Ahmad, and Low Xhu Hern.

In a filing with the bourse on Thursday, the HHRG’s board of directors said the decision to not convene the EGM was made after considering all the information available and after taking legal advice.

“The board of directors of the company is of the view [that] the resolutions proposed by DTB, if passed, would not be in the best interest of the company,” HHRG said.

The company has also filed a suit against DTB and CFamillie at the Shah Alam High Court, to declare the requisition notice for the EGM as invalid and to stop them from convening the meeting.

HHRG claims that the notice was made in bad faith, and was an abuse of power.

HHRG has also applied for an order from the court to stop the meeting from being convened, pending the final disposal of their legal action against DTB and Cfamillie.

Trading in HHRG shares was halted until 10am on Thursday, following the announcement.

HHRG’s share price last traded at 11.5 sen a share, giving it a market capitalisation of RM110.6 million. Year to-date, the stock is down 4.17%.