KUALA LUMPUR (April 23): Sapura Holdings Sdn Bhd's founder Tan Sri Shamsuddin Abdul Kadir took the stand on Wednesday as the company's winding-up case continued, following a breakdown in settlement talks between his sons, feuding brothers Tan Sri Shahril Shamsuddin and Datuk Shahriman Shamsuddin.
The court paused proceedings on Tuesday to let both sides try to settle the winding-up case.
The court was not informed of the reasons behind the breakdown of the settlement talks.
Shamsuddin told the court before High Court judge Leong Wai Hong on Wednesday that the company should still be regarded as a family company, despite the introduction of Datuk Rameli Musa as a shareholder and director.
Under cross-examination by Rameli’s lawyer Ranjit Singh, Shamsuddin maintained that there was a relationship of mutual trust and confidence, not just within the family but also with Rameli, whom he considered "like family".
Ranjit: In various parts in the affidavit, you say that the company is a family company and remains a family company. I am putting it to you that originally, when you and [the late] Puan Sri [Siti Sapura Husin] were shareholders, it would have been a family company. But with the introduction of Datuk Rameli, that concept of a family company had ceased to exist. Agree or disagree?
Shamsuddin: Disagree.
Ranjit argued that bringing Rameli into the company in 1980 weakens the claim that it is strictly a family business, especially since there is no formal proof of any agreement to keep it within the family.
“There is no document. It was an understanding,” Shamsuddin replied, adding that Rameli had initially refused to accept the shares offered to him on the grounds that Sapura Holdings was a family company, but later accepted after consulting his wife.
Shamsuddin denied claims that he never told Rameli the company was meant to stay family-controlled. He said this understanding was repeated in many meetings and decisions over the years.
In his affidavit, Shamsuddin said he was shocked that both Shahril and Rameli denied Sapura Holdings was meant to be a family company built on mutual trust. He said this understanding had been made clear many times over the years and was accepted by everyone, including Shahril, Shahriman, and Rameli. Shamsuddin added that whenever he transferred shares, he clearly stated this intention, which was always acknowledged.
"I had intended Sapura Holdings to be a family company, and this was made known and clearly understood and accepted by the entire family, including Shahril and Shahriman, who came back to work for the company, and also by Datuk Rameli who was entrusted to guide them. Whenever I transferred shares, I did so with a clear expression of this understanding, and it was continuously repeated back to me over the years. This is why this denial is so shocking and disappointing,” he said in the affidavit.
The case will resume on May 15, with Shamsuddin being cross-examined by Shahril's lawyer, Rabindra S Nathan of Shearn Delamore.
Shahriman filed a petition on Sept 23, 2024, to wind up Sapura Holdings believing it is needed for a fair asset distribution. Shahril, however, opposed this, claiming it is not a family company.
Both Shahriman and Shahril hold a 40.5% direct stake each, while their equally owned vehicle Brothers Capital Sdn Bhd has a 15% stake. Rameli owns a 4% interest in the company.
