V.S. Industry Berhad has announced that the Kuala Lumpur High Court has dismissed Lim Chang Huat, Lim Chee Kon, Chow Chun Pooi @ Chow Chan Leong, and NEP Holdings (Malaysia) Berhad application for a stay of execution of the Winding Up Order and their application to the Court of Appeal for a stay of execution was also dismissed.
Following this, NEP’s liquidators have obtained the Certificate of Appointment as Liquidator from the Insolvency Department and have taken control of NEP’s business and operations. NEP is required to hand over all assets and properties to the liquidators, including statutory books, accounting records and statements of affairs. The directors of NEP have also been notified that their authority has ceased, and they are prohibited from representing NEP or entering into contracts on its behalf unless expressly authorized in writing by the liquidators
NEP, a Malaysian company established in 1995, is known for its water filtration system products used in thousands of households across Malaysia, Hong Kong, Singapore, and China. The company also markets “Arissto” brand coffee machines and capsules.
To recap, the High Court last month ruled in favour of VS in its originating summons under Section 346 of the Companies Act 2016. The court determined that VS had successfully proven that NEP’s affairs were conducted, and its directors’ powers exercised, in a manner oppressive to or in disregard of VS’ interests as a shareholder.
The dispute stems from subscription and shareholders’ agreements executed in 2016, granting VS a 20% stake in NEP. Despite these agreements, NEP failed to hold Board meetings or AGMs since 2021, withheld audited financial statements and did not distribute agreed dividends despite reported profits. These actions deprived VS of its statutory shareholder rights, prompting the company, on legal advice, to file an oppression suit in July 2023, seeking NEP’s winding up and the appointment of private liquidators to investigate its affairs.
The dismissal of NEP’s stay applications by the Kuala Lumpur High Court and Court of Appeal with the liquidators now in control of NEP are major steps toward resolving this matter, reinforcing VS’ dedication to accountability and protecting shareholders’ interests.
