High Court rules Stone Master's EGM on May 30 valid

PETALING JAYA: The Kuala Lumpur High Court has ruled that Stone Master Corp Bhd’s EGM held on May 30 is valid following its decision to set aside the ex-parte injunction order to the company in relation to the EGM.
With the ruling, the company said, managing director Datuk Koh Mui Tee and executive director Datuk Lee Hwa Cheng have been removed from the board, while eight new directors appointed at the meeting have assumed their positions on the board.
Koh and Lee had said they did not recognise the EGM due to the unauthorised removal of proxy forms. However, the EGM, which was called by the company’s executive director and single largest shareholder Datuk Karen Lee Fong Yin, was successfully convened.
Nonetheless, an injunction of the EGM was granted ex parte on June 2 to Stone Master through an application by Koh in an attempt to prevent the implementation of the resolutions passed at the EGM.
Subsequently, an application to set aside the ex parte order was then made by Fong Yin, stating that the ex parte order was granted through non-disclosure of material facts and misrepresentations.
In setting aside the ex parte order, Stone Master said, the High Court judge made further orders that whoever with possession of any property belonging to the company, including the books and records and the Bursalink password, surrender them to Fong Yin.
It noted that the High Court has fixed Aug 1, 2017 for inter parte hearing of the injunction. Nevertheless, as of today, the company said, there are no further injunctions preventing the company from implementing all the resolutions passed at the previous EGM.
“The decision to set aside the injunction is an important milestone for Stone Master. It allows the company to carry out the resolutions approved by our shareholders. This will enable the new board to conduct its oversight and fiduciary duties with maximum efficiency and effectiveness,” Fong Yin said.
“Moving forward, the immediate responsibility of the board will be to carefully review the actions and agreements undertaken by the former management team and to take the necessary action to safeguard the interest of our shareholders,” she added.
Stone Master’s external auditors Messrs Baker Tilly Monteiro Heng had on Feb 8 expressed a qualified opinion on its audited financial statements for the financial year ended Sept 30, 2016, due to a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.
The external auditors also recommended that an investigative audit be commissioned to obtain explanations on the Securities Commission Malaysia’s suit against the company’s former deputy managing director, Datin Chan Chui Mei, for allegedly causing wrongful loss to the company.