Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on July 19, 2018

KUALA LUMPUR: APFT Bhd has filed a lawsuit against its former executive chairman Datuk Faruk Othman for misappropriation of funds, causing the company to trigger the Practice Note 17 (PN17) status and is a breach of Bursa Malaysia’s Main Market listing requirements.

In a filing with Bursa, APFT said the flight education and training services provider, through its solicitors Messrs Lim, Chong, Phang & Amy, filed a writ and a statement of claim yesterday.

The company also applied for an interim injunction against Faruk to bar him and his representatives or nominees from participating in the management of the company, as well as restrain him from exercising his voting rights attached to the company’s shares.

“At the time of this announcement, the cause papers of this suit had not been sealed yet. The company will make a further announcement once the cause papers are sealed and extracted,” it added.

Yesterday’s lawsuit follows a notice of proposal received from Faruk and Hisham Mustaffa to appoint directors to its board last Friday.

APFT said after perusing the background facts leading to the notice, it had engaged solicitors to seek legal advice.

Faruk was APFT executive chairman for seven years since June 22, 2010, before resigning on Nov 6 last year. He ceased to be a substantial shareholder of APFT on June 8.

According to Bloomberg data, he does not hold any of the company’s shares. Currently, APFT’s largest shareholder is Goh Yang Eng, with a 7.39% stake in the company.

On June 26, APFT, in the red since 2012, was further hit when its external auditor Adam & Co expressed material uncertainty related to the company’s ability to continue as a going concern.

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