KUALA LUMPUR (June 5): Talam Transform Bhd (KL:TALAMT) said it is obtaining legal advice on a lawsuit seeking to stop the company and its directors from taking any action that could affect the outcome of an upcoming extraordinary general meeting (EGM) aimed at removing the entire board.

The property developer and its directors received the writ of summons filed by three shareholders — Ang Lam Poah, Loo Leong Fatt (who emerged as a shareholder in August last year) and Loo Foong Luan — on Thursday (June 4), Talam Transform said in a filing with Bursa Malaysia on Friday.

Ang is also the chief executive officer of Jaks Resources Bhd (KL:JAKS).

In an earlier announcement on May 21, Talam Transform referred to a notice on an EGM to be convened by the three shareholders and M&A Nominee (Tempatan) Sdn Bhd, who claimed to have a combined shareholding of not less than 10% of the company's paid-up share capital. The notice to shareholders was also adverstised in a local daily.

In its filing on Friday, the company said the lawsuit names the company and its directors (described as caretaker directors), and seeks to prevent them from undertaking any act that may influence the outcome of the EGM requisitioned by the shareholders, pending its conclusion.

"The company is currently seeking legal advice and will make the necessary announcements on the development of the said matter to Bursa Malaysia Securities in due course," it added.

Talam Transform said it is also seeking confirmation and supporting documents to verify the authority of the two signatories who executed the notice on behalf of M&A Nominee (Tempatan) Sdn Bhd, as well as clarification on the grounds for the proposed removal of the board.

This marks the second attempt by its shareholders in recent months.

In December last year, they had requisitioned for an EGM to appoint a forensic auditor. The meeting, held on May 14, saw shareholders overwhelmingly reject all proposed resolutions relating to the appointment of a qualified auditor and audit firm.

Loo Leong Fatt acquired 134.99 million shares in Talam Transform via a private placement in August last year and has a deemed interest in shares held by his daughter. He currently controls 143.01 million shares, representing a 4.457% direct stake and an 8.164% indirect stake. He also holds a 1.29% direct stake in Jaks Resources.

Talam Transform’s largest shareholder is non-independent non-executive director Puan Sri Thong Nyok Choo, who holds a 17.51% direct stake and a 4.94% indirect stake as of end-January. She is the widow of the late founder Tan Sri Chan Ah Chye @ Chan Chong Yoon.

Shares of Talam Transform closed unchanged at 7.5 sen on Friday, giving the group a market capitalisation of RM88.69 million.