This article first appeared in The Edge Financial Daily on May 4, 2017

KUALA LUMPUR: Hock Seng Lee Bhd (HSL), which failed to obtain a High Court order last month to strike out a suit to remove four directors of the company, has brought the matter to the Court of Appeal.

HSL, together with managing director Datuk Paul Yu Chee Hoe and three other directors, are being sued over issues of disclosure to the relevant authorities in relation to the acquisition and disposal of shares in HSL’s holding company, Hock Seng Lee Enterprise Sdn Bhd.

In the law suit initiated by HSL shareholder Yii Chee Ming last December, HSL was named as the fifth defendant. Yii had also sought for the removal of Paul, executive directors Tony Yu Yuong Wee and Lau Kiing Kang, and non-executive director Lau Kiing Yiing.

HSL and the other defendants had applied on Jan 16 for the suit to be struck out, but the High Court of Kuching had dismissed their application on April 20 with RM5,000 costs, and fixed Tuesday for mention of the case.

In a Bursa Malaysia filing yesterday, HSL said the group had appealed to the Court of Appeal yesterday to overrule the High Court’s decision, as its board of directors were not satisfied with the outcome.

“Furthermore, the High Court had on Tuesday scheduled the originating summons for further directions on May 9,” it added.

Shares in HSL closed up two sen or 1.18% at RM1.71 with a market capitalisation of RM939.67 million.