Multi Sports gets six new directors

KUALA LUMPUR: Shareholders of China-based Multi Sports Holdings Ltd (MSports) voted in favour of appointments of six directors at a time when concerns are raised over the company’s financial accounts.
Paramjit Singh Gill, a 11.9% shareholder of MSports, yesterday called for a special meeting for the appointment of Kasinathan Tulasi, Naren Anand Gill, Clarence Yeow Kong Chew, Cheh Chee Mun, Guan Swee Kee and Terence Selvarajah.
The were given the mandate to carry out an independent investigation of the company’s affairs, and even undertake a forensic audit, if needed.
However, Paramjit noted the new directors will have a meeting first before deciding on the next course of action.
With the experience that the new directors have in legal and accounting, Paramjit said they can help look into the company affairs, including reviewing and investigating its operations.
“We’ll find out what has gone wrong with the company. This is the final opportunity to take action to protect shareholders’ interest,” he said.
Worth noting is that prior to yesterday’s appointments, MSports was only left with two directors – chairman Lin Huozhi and CEO Lin Liying. Liying is the daughter of Huozhi.
Huozhi has been paring down his stake from over 30% in 2014 to the current 11.45%.
Speaking to reporters after the meeting, Paramjit said he had written a letter expressing concerns to the company but the management did not reply to queries.
Trading in MSports shares has been suspended since May 10 following its failure to submit its quarterly financial report ended June 30, 2016 as its external auditors RT LLP requires time to verify the company’s expenditure incurred and bank balances.
The counter was last traded at 3.5 sen, a 95% drop compared with its initial public offering (IPO) of 80 sen in 2009.
MSports swung to the red registering a net loss of RM8.93 million for the first quarter ended March 31, 2016 against a net profit of RM6.16 million in the previous corresponding period.
Paramjit also said that the regulators are monitoring the development in MSports closely.
“The Securities Commission and Bursa Malaysia are very keen to know what is happening. They have been in touch with us,” he added.