KUALA LUMPUR (Aug 13): Iris Corporation Bhd (KL:IRIS) has failed in its appeal against a High Court decision to throw out the company's lawsuit against nine former board members over losses arising from the subscription of shares in a UK-based firm.
In its decision on Wednesday, the Court of Appeal also ordered Iris to pay RM40,000 in legal costs to each of the five set of solicitors representing the nine defendants, according to the company's bourse filing.
The defendants include former chairmen Tan Sri Razali Ismail and Datuk Nik Azman Mohd Zain, and former group managing director and chief executive officer Datuk Tan Say Jim.
The others are Tunku Datuk Seri Shahabuddin Tunku Besar Burhanuddin, Datuk Hamdan Mohd Hassan, Datuk Eow Kwan Hoong, Chan Feoi Chun, Syed Abdullah Syed Abd Kadir, and Datuk Noor Ehsanuddin Mohd Harun Narrashid.
The suit, filed in April 2019, was dismissed by the High Court in August 2022. Iris had sought RM11.72 million — comprising RM11.24 million (£2.05 million) paid to subscribe to shares in UK-based Border Control Solutions Ltd and RM482,172 (£84,000) paid to Joseph Vijay Kumar as consultancy fees — as well as other relief deemed fit by the court.
Iris alleged that the defendants had failed to discharge their respective fiduciary duties, duties of fidelity, and/or duties to exercise reasonable care, skill and diligence as company directors.
On Wednesday, the company said it will seek legal advice on the next course of action following the Court of Appeal’s decision.
Shares of Iris closed down half a sen or 2% at 24.5 sen, giving the company a market capitalisation of RM199.85 million. The counter has fallen over 23% year-to-date.