The Kuala Lumpur High Court has declared that Honsin Apparel Sdn Bhd and HiQ Media (Malaysia) Sdn Bhd have abused the court process in their attempt to call for an extraordinary general meeting to remove all the directors of South Malaysia Industries Berhad.
Accordingly, the court has allowed SMIB’s application and exercised its power to strike out Honsin and HIQ’s originating summons with RM20,000 costs to SMIB and RM4,000 costs to Tricor Investor & Issuing House Services Sdn Bhd, which is the share registrar of SMIB.
In dismissing Honsin and HIQ’s originating summons, the KL High Court set out the brief grounds, stated that Honsin, HIQ, their advisors, and solicitors intentionally cited the wrong legislation.
It added that by intentionally citing the wrong legislation to justify their demand for ROD within two working days and then filing an originating summons when the demand was not met, Honsin and HIQ have taken advantage of their own wrong by filing their suit, which cannot be allowed.
SMIB said, “The KL High Court decision gives us renewed hope in protecting the company’s and shareholders’ interests. Honsin and HIQ were presumptuous in their approach to demand SMIB provide the ROD in one working day and took to the courts to push through their agenda. With the KL High Court decision and no ROD, we would like to emphasise that no Notice of EGM has been validly issued by Honsin and HIQ. We hope this clarifies any confusion that shareholders might have on this matter.”
