D’Nonce chairman, directors re-elected amid boardroom tussle

17 Jun 2019 / 19:45 H.

PETALING JAYA: D’Nonce Technology Bhd’s shareholders approved the re-election of its chairman Tengku Ahmad Badli Shah Raja Hussin and three directors at its AGM held in Kota Baru, Kelantan, today.

This comes after largest shareholder Blackstream Investment Pte Ltd’s attempt to restrain the company from proceeding with the AGM.

A filing with Bursa Malaysia revealed that the resolutions to re-elect Tengku Ahmad, Lim Teck Seng (executive director and group CEO), Datuk Yeo Boon Leong (non-independent non-executive director) and Ng Kok Wah were carried at the AGM. Ng, who resigned last week, has been re-appointed as independent non-executive director.

“Confidence and faith are reinforced for the board and its management today after the majority votes by shareholders have re-elected us as custodians for this group. Therefore, any unauthorised motions passed in the EGM do not hold water and are null and void,” Tengku Ahmad told SunBiz.

Shareholders also approved the payment of directors’ fees and benefits, and the re-appointment of Messrs BDO as auditors.

However, five out of the 12 resolutions were not carried namely, the authority to allot and issue shares, proposed renewal of shareholders’ mandate on recurrent related party transactions, proposed renewal of authority for the purchase of the company’s own ordinary shares, proposed adoption of new constitution of the company and proposed change of company name.

Tengku Ahmad said the results of the poll show that the shareholders present were against the adjournment of the AGM, despite high resistance from its largest shareholder Blackstream which holds a 25.61% stake.

“It did not come as a surprise following their claimants in a public article that I have walked out in the last EGM when the true representation is via the official minutes of meeting that is being submitted to Bursa Malaysia,” he said.

“As a matter of fact, we have wholeheartedly invited the shareholder from Blackstream to elect a director which they have not done so. Unfortunately, it is a display of reluctance and unprofessionalism to take part in our journey to move the company forward,” he added.

He said the management is focused on bringing the business to greater heights and become a fully integrated global contract manufacturing company in order to remain relevant for the next two years.

It plans to expand its reach in the local and overseas market as well as vertical integration that can enhance the group’s machinery and equipment capabilities. Targeted countries for growth include Singapore, Thailand and Indonesia.

In order to combat market volatility, D’Nonce is geared up for new product development. It is venturing into new business opportunities and has secured new businesses in trading of lubricant oils. It has also identified property development as its fourth segment.

“Our potential is great. We are long standing and a deeply rooted establishment that has been and will be continuously contributing to the nation’s economy. The management seeks to ensure that the company grows beyond its current capabilities,” said Tengku Ahmad.

Last week, D’Nonce’s EGM on June 12 which was called by Blackstream, was adjourned when shareholders voted in favour of the adjournment.

However, Blackstream, in challenging the legality of the adjournment, proceeded with the EGM and later claimed that all resolutions were passed, including those on the removals of Tengku Ahmad, Lim and Yeo as well as the appointments of Lim Siang Kai, Lam Kwong Fai (Lin Guang Hui) and Chong Kim Teck.

Subsequently on Friday, Blackstream and P’ng Chiew Keem filed an originating summons in the Kuala Lumpur High Court to declare the adjournment of the EGM to be null and void. It is fixed for hearing on June 24.

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