KUALA LUMPUR (April 10): Sapura Resources Bhd (KL:SAPRES) and its subsidiaries have initiated legal action against its former managing director and director Datuk Shahriman Shamsuddin and three others, alleging breaches of fiduciary, statutory and contractual duties, as well as conspiracy to injure the companies.
This came after Sapura Resources' announcement on March 10 regarding the completion of an internal investigation involving Shahriman, with the probe's report submitted to the Companies Commission of Malaysia (SSM) and Bursa Malaysia.
The company also lodged a formal complaint with the SSM for potential breaches of the Companies Act 2016 related to conflict of interest and filed a police report, as required by the SSM.
In a bourse filing, the property and aviation group said it, along with its wholly-owned units Sapura Aero Sdn Bhd and Aerodome Fife Sdn Bhd, commenced legal action on Thursday (April 10) by filing a generally endorsed writ of summons at the High Court of Malaya in Kuala Lumpur.
The legal action names Shahriman as the first defendant, with the other defendants being former employees and consultants, Syed Haroon Omar Alshatrie and Syed Muhammad Hasan Alsagoff, as well as Explorer Group Sdn Bhd.
The plaintiffs are seeking a combined payment of RM3.2 million related to deposits paid to Malaysia Airports Holdings Bhd (MAHB), payments made under mutual separation schemes and consultancy fees, trip expenses, as well as salaries and legal costs incurred.
Sapura Resources is also seeking claims for general, aggravated, and equitable compensation to be assessed by the court, including losses related to missed business opportunities, such as an initial public offering (IPO) that was previously estimated to be worth RM82.1 million.
Sapura Resources said it will make the appropriate announcements to Bursa Malaysia as and when there are material developments.
Placed on garden leave in Sept 11 last year, when the board initiated investigations against him, Shahriman tendered his resignation on Oct 30, 2024. He joined Sapura Resources's board as a non-independent non-executive director in July 2005, before being redesignated as MD in March 2007.
Shahriman, together with his brother Tan Sri Shahril Shamsuddin, holds an indirect 51.5% stake in Sapura Resources.
The brothers, however, have been locked in a public feud for some time now. The dispute seemingly erupted when Shahriman filed a petition with the High Court in September last year to wind up Sapura Holdings Sdn Bhd, the family’s investment vehicle, in which he and Shahril each own a direct stake of 40.5%. Brothers Capital Sdn Bhd, their other vehicle, holds 15% in Sapura Holdings, while Datuk Rameli Musa owns 4%.
The Edge previously reported that the probe on Shahriman was believed to be linked to either the hiring of an unqualified individual at Sapura Resources or a potential conflict of interest involving Shahriman’s interest in Explorer Group, a company where he has been a director since 2019.
Explorer Group is considered an entity in competition with Sapura Resources’ two wholly-owned aviation-related businesses — Sapura Aero Sdn Bhd and DNest Aviation Sdn Bhd.
Sapura Resources shares closed unchanged at 25 sen on Thursday, with a market capitalisation of RM65 million.