Extol board tussle intensifies

PETALING JAYA: Four shareholders bid to remove three directors from the board of Extol MSC Bhd looks set to be a long drawn out affair with an eleventh hour injunction, which effectively stopped the EGM from going ahead.
Extol MSC was to have held an EGM requisitioned by four sharehodlers to remove Mohd Badaruddin, Datuk Ahmad Ismail and Mohd Faidzal Ahmad Mahidin and appoint Datuk Lai Wen Shian, Wong Ngai Peow and Low Kim Leng.
In a filing with Bursa Malaysia on Friday however, Extol Malaysia said the three directors to be removed, had obtained an interim injunction order from High Court in Kuala Lumpur to stop the EGM from going ahead.
Last month, four shareholders who collectively own not less than 10% stake in Extol requisitioned to convene an EGM to remove three of its board members, without stating the reasons for the removal.
The four shareholders are Manjung Untung Sdn Bhd, Crystal Privilege Sdn Bhd, Datuk Lai Wen Shian and Datuk Lai Wen Horng.
Just three days before the requisition, Bursa had made a query on Extol's price increase, to which management had said it was unaware of any corporate exercises that could have contributed to it.
For the first quarter ended Dec 31, 2013, Extol made a net loss of RM826,000, widening from RM750,000 for the corresponding period a year ago.
Meanwhile, it suffered RM1.35 million losses last financial year, mainly due to stiff competition in the market.
Its share price, however, surged more than four-hold to as much as 44.5 sen in mid-March from early this year despite lackluster financial performance.Last Friday its shares closed up 1.28% to 28 sen. Year-to-date, the stock has still risen nearly 140%.