KUALA LUMPUR (May 30): PeterLabs Holdings Bhd (KL:PLABS) on Thursday said the group has decided not to convene an extraordinary general meeting (EGM) to remove its directors as requested by two substantial shareholders.
“The board is of the view that the resolutions proposed by Bu Yaw Seng and Datin Lin Ching Yein, if passed, would not be in the interest of PeterLabs,” the animal health and nutrition products group said in a bourse filing. “As such, the board has decided not to convene the EGM as requested.”
Bu and Lin, who collectively hold more than a 10% stake in PeterLabs, sought the EGM to remove seven directors and replace them with two new nominees.
The company, in its filing, added that it has initiated a lawsuit against the two shareholders in the High Court in Seremban, seeking to invalidate their request for the EGM and prevent any steps towards its convening.
The company is seeking a court declaration that the requisition notice is invalid and that the proposed resolutions would be detrimental to its interests.
PeterLabs is also requesting an order to restrain Bu and Lin from calling or conducting the EGM.
The call for the EGM came after the Malaysian Anti-Corruption Commission (MACC) raided PeterLabs’ principal office and its wholly-owned subsidiary Thye On Tong Trading Sdn Bhd's premises, following a formal complaint lodged by the group regarding allegations against a director, Datuk Loh Saw Foong.
PeterLabs has suspended Loh from his executive duties, pending the outcome of both its internal investigation and an ongoing probe by the MACC.
Shares in PeterLabs closed up two sen or 5.19% to 40.5 sen on Thursday, valuing the group at RM110.03 million. Year to date, the stock has more than doubled, gaining over 100%.