PETALING JAYA: Iris Corp Bhd has commenced legal proceedings in the Kuala Lumpur High Court against its former members and an existing member of the board of directors, in relation to its investment in Border Control Solutions Limited (BCS). The company is seeking a total claim sum of at least RM12.2 million.
In a filing with Bursa Malaysia, the company said that the action was brought for loss suffered from the defendants’ failure to discharge their respective fiduciary duty, duty of fidelity and/or duty to exercise reasonable care, skill and diligence as directors at that material time.
The nine defendants comprise former directors namely Tan Sri Razali Ismail, Datuk Tan Say Jim, Tuanku Datuk Seri Shahbuddin Tunku Besar Burhanuddin, Datuk Hamdan Mohd Hassan, Datuk Eow Kwan Hoong, Syed Abdullah Syed Abd Kadir, Datuk Noor Ehsanuddin Mohd Harun Narrashid and Datuk Nik Azman Mohd Zain, as well as current director Chan Feoi Chun.
Iris is seeking reliefs amounting to RM11.72 million being the total amount paid by the company for the subscription of BCS’s shares and RM482,172 being the total amount paid by the company to Joseph Vijay Kumar as consultant fees.
It is also seeking pre-judgment interest on the sums awarded comprising 5% interest per annum on RM11.72 million from Aug 24, 2016 until the date of full settlement, and 5% interest per annum on RM482,172 from Oct 10, 2016 until the date of full settlement.
Other reliefs sought include post-judgment interest on the sums awarded on the above at 5% interest per annum from the date of judgment until the date of full and final realisation; general damages to be assessed; interest on the general damages awarded; costs; and/or reliefs deemed fit and just by the court.
Apart from legal costs, the litigation is not expected to have material financial impact to the company as the first two reliefs have been fully impaired/expense of in the previous financial year.
Iris’ share price fell 5.41% to close at 17.5 sen today with 39.81 million shares traded. It was one of the top active stocks on the bourse today.
