KUALA LUMPUR: South Malaysia Industries Bhd (SMI) today said it will only circulate the notice to appoint four directors proposed by Chong Fu Shen, once a notice of application of interim injunction by shareholder, Mah Sau Cheong, has been heard by the Court.
SMI was to circulate a notice to move resolutions to appoint Lum U-Jun, Chong Fu Chih, Loo Choo Hong and himself as directors of the company at the company's 52nd annual general meeting on Mar 27, 2024.
A writ of summons and notice of application for an interim injunction by Mah however, has put that on hold.
Mah holds a 7.65 per cent interest in the company.
Among others the injunction seeks to stop the company from including resolutions proposed by both Chong and Honsin Apparel Sdn Bhd, to add or remove directors.
It also seeks to stop Datuk Au Yee Boon from doing the same.
SMI said it will follow legal counsel advice to hold off circulating the notice until the matter has been heard in court.
This was decided at an emergency board meeting today.
During the board meeting, the company's legal counsels advised the board that it can be considered as contemptuous of Court if the company pre-empts what the Court will decide.
"Following due consideration of the board, the board agreed with the company's legal counsels that it would be best for the company to maintain its status quo and let the Court make a decision before the company circulates the notice to members in relation to the proposed resolutions as set out in the notice of intention issued by Chong.
The seeks to Lum U-Jun, Chong Fu Chih, Loo Choo Hong and himself as directors of the company.
Honsin Apparel had sought to appoint Hong Zheng Hong and Tan Eng Gooi as directors of the company,
SMI however cited Rule 15.01 of the Rules on Take-Overs, Mergers and Compulsory Acquisitions as a reason for not allowing the resolutions to be included.
SMI's share price was down 6.45 per cent to 58 sen a share today.