Thursday 28 Mar 2024
By
main news image

This article first appeared in The Edge Financial Daily on December 13, 2017

KUALA LUMPUR: One of two legal firms appointed by Maxwell International Holdings Bhd to conduct due diligence on 14 court litigation cases involving the group’s subsidiaries has resigned due to difficulties faced when conducting its work, including allegedly uncooperative courts.

“Beijing Taojin Law Office on Dec 11, 2017 tendered their resignation due to the difficulty faced by Beijing Taojin Law Office in conducting the due diligence in relation to the litigation’s investigation,” said Maxwell in a filing yesterday.

In exchange, Maxwell has appointed Guangdong Kingbridge Law Firm, which it said is “familiar with Guangdong and Fujian provinces area legal matters” to take over the task.

“Guangdong Kingbridge Law Firm will also conduct special due diligence on the cash deposits placed with the asset management company and Maxwell (Xiamen) Co Ltd’s advertisement expenses,” it added.

The China-based Beijing Taojin Law Office was appointed by Maxwell on Sept 5 to conduct special legal due diligence on the 14 litigation cases involving its subsidiary Jinjiang Zhenxing Shoes & Plastics Co Ltd and the latter’s indirect unit, Hebi City Yifu Plastics Product Co Ltd.

On Sept 29, Maxwell said it was informed by Beijing Taojin Law Office that the due diligence had not progressed smoothly because “the courts have not been cooperative” and that the total number of cases and value involved could not be determined and could be more than the amount it was initially made aware of.

It previously said the amounts claimed might come up to some 272.18 million yuan.

Maxwell first announced on July 31 that it was made aware of the court cases. At the time, it appointed Malaysia-based independent external law firm Messrs Dennis Nik & Wong to confirm and clarify the accuracy of the cases, its impact and the steps to be taken by the companies involved.

Shares in Maxwell traded unchanged at two sen yesterday, giving it a market capitalisation of RM8 million.

      Print
      Text Size
      Share