KUALA LUMPUR: Prolexus Bhd has issued another requisition notice for an extraordinary general meeting (EGM) to remove the current South Malaysia Industries Bhd (SMIB) board of directors and nominate two new directors.
The move comes after a recent court decision that has impacted shareholders' rights.
"We regret to inform our members that the High Court has ruled in favour of SMIB and has struck out our originating summons compelling the SMIB board to provide us with the company's record of depositors (RoD) so that an EGM could be organised.
"This is to allow shareholders to consider and vote on the resolutions related to changing the existing board of SMIB," Prolexus executive director Tan Eik Huang said in a statement.
He said Prolexus previously filed the summons requesting the SMIB board provide the RoD.
"We believed we had a legitimate interest and statutory rights in obtaining this information as members of the company to convene an EGM," Tan said.
"However, the High Court has ruled that the summons was filed prematurely and that we had no cause of action at the time of filing the summons.
"Notwithstanding, we emphasise that it's important to note that the High Court did not dismiss the merits of our rights as members of the company to request the RoD.
"We understand and respect the High Court's decision and are committed to conducting ourselves lawfully and respectfully.
Tan said Prolexus does not take this as a setback but will remain committed to advocating for the interests of its shareholders and will continue to explore all legal avenues available.
We thank our shareholders for their ongoing support and trust while we focus on achieving our objectives lawfully and respectfully.
"In light of the High Court's decision and the company's announcement dated February 27, 2023, stating that the RoD would be provided upon Smib receiving a proper and correct notice, we are collaborating with the company's legal counsels to address the main grievances in not providing the RoD as ventilated in the High Court previously.
This will enable Prolexus' shareholders to access the RoD and facilitate the organisation of an EGM.
"We are hopeful that we can work together with SMIB to find a way to obtain this information lawfully and respectfully," Tan added.
Tan said the primary objective of the EGM is to pave the way for new leadership that can steer the SMIB towards recovery and growth.
Prolexus aims to restore investor confidence, enhance shareholder value, and re-establish SMIB's reputation and leadership by taking this action.
The EGM will also allow the shareholders to decide the SMIB's fate.
Prolexus possesses sufficient shares in SMIB via Honsin Apparel Sdn Bhd and HIQ Media (Malaysia) Sdn Bhd to request an EGM.
Tan said that as Prolexus holds 10.01 per cent of SIMB, the company is entitled to exercise this statutory right.