KUALA LUMPUR (March 10): NexG Bhd (KL:NEXG) said executive chairman Datuk Abu Hanifah Noordin and Siti Nur Aishah Ishak — linked to largest shareholder Raya Aviation Holdings — have gone to court to block his suspension and maintain the board and management structure ahead of their requisitioned extraordinary general meeting (EGM).
The duo named the company, six directors they are seeking to remove, and other unnamed individuals in the suit, to ensure resolutions passed at a March 5 special board meeting, which led to Hanifah’s suspension, and other changes to the board and management do not come into effect until the EGM called to replace the six directors, happens. This was according to a filing with the bourse on Tuesday.
The six directors named in the suit are Syed Farid Syed Ahmad Al-Attas, Kunal Tayal, Aswath Ramakrishnan, Mohd Zafil Ibrahim, Mohamed Fairuz Mohamed Fauzy and Badrul Hisham Abdul Aziz, and were named as defendants in the suit.
One of the directors proposed for removal — executive director Datuk Chong Loong Men — stepped down on March 8. Board members not listed for removal included Datuk Ab Hamid Mohamad Hanipah and Erna Ismail.
The suit’s writs of summons and statement of claim looks to restrain the defendants, whether through their agents, servants, nominees or otherwise howsoever, from making major decisions — including board or management changes, share issuances, investments and strategic actions — until the EGM takes place.
They are also seeking to restrain NexG and the directors from authorising company announcements, chairing all general and board meetings, retracting the termination of undisclosed 10th and 11th defendants as corporate advisors, appointing an external joint company secretary, and appointing a legal advisor to review and confirm the validity of the EGM notice.
Hanifah and Siti Nur are also claiming for general damages.
NexG said it is seeking legal advice on the matter.
The suit is a continuation of an ongoing boardroom tussle at NexG. It began after Raya Aviation Holdings — an air cargo company controlled by the sons of Ishak — emerged as NexG’s largest shareholder on March 4.
A day after, Hanifah, Siti Nur and Velocity Capital Sdn Bhd — the financing arm of Velocity Capital Partner Bhd (KL:VELOCITY) — issued a notice to propose for an EGM on April 3 to remove seven directors and appoint eight new ones, including Ishak and his son, Raya Airways group managing director Mohamad Najib Ishak.
On the same day, the board of NexG suspended Hanifah amid a review of the company’s investments in other public-listed companies. It also appointed an external professional to verify the shareholding changes related to Raya Aviation’s acquisition of a 20.4% stake by taking control of two private companies — Skyelimit Alliance Sdn Bhd and Trendtrove Tradin Sdn Bhd.
Shares in NexG ended half a sen or 1.82% higher at 28 sen, valuing the company at RM1.04 billion.
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