KUALA LUMPUR (June 6): Ire-Tex Corp Bhd said the High Court has ruled that the extraordinary general meeting (EGM) called upon by its major shareholder Elite Cosmo Group Ltd was null and void.

In a late filing yesterday, the company said the court had dismissed the originating summons against the current directors of the company (170 OS), which sought the removal and restraint of directors Mak Lin Kum, Felix Chin Wui Choong, Ahmad Amryn Abd Malek and chairman Datuk Seri Mohd Shariff Omar.

The court had instead allowed the suit against Elite Cosmo, Raja Hizad Kamarulzaman and Hamdan Mohd Nor (165 OS), and had declared the EGM convened on April 27 as null and void.

The court also ruled that the resolutions passed at the EGM were null and void, which included the resolutions to remove Mak, Chin, Ahmad Amryn and Mohd Shariff from the board and the appointment of Raja Hizad and Hamdan as directors.

"The issue of costs in respect of 165 OS and 170 OS is to be taken up in written submissions, which are to be filed on or before June 13, 2017. The court will give its decision on costs on June 19, 2017," said Ire-Tex.

To recap, the EGM convened in April was riddled with unusual conduct and had concluded with two contradicting outcomes that were filed with Bursa Malaysia by the two factions battling for control of the loss-making company.

In May, the tussle escalated as police reports were filed against independent non-executive director Kong Hon Kay and group chief operating officer Christopher Purcell over payments totalling RM1.8 million made to OGL Asia Resources between June 2015 and October 2016.

Separately, Ire-Tex said it received a letter from the Commercial Crime Investigation Department informing that a police report made by former executive director Derick Soo Tee Wei has been classified as a criminal breach of trust case and investigation papers pertaining to Zoomic Automation (M) Sdn Bhd have been opened.

Recall that in 2015, Ire-Tex's auditor UHY Chartered Accountants had presented a qualified opinion on the group's financial statements for the financial year ended Dec 31, 2014 in relation to a RM16.5 million purchase of machinery by Zoomic from Future Rank Sdn Bhd, which is a related party of Ire-Tex.

Ire-Tex fell 1 sen or 4.76% to 20 sen at 11.40am, giving it a market capitalisation of RM28.98 million.