This article first appeared in The Edge Financial Daily on October 19, 2017

KUALA LUMPUR: Two shareholders of GN3 company R&A Telecommunication Group Bhd, who are holding not less than 10% of the company’s shares, are calling for an extraordinary general meeting (EGM) to remove the entire board of directors.

R&A told Bursa Malaysia on Tuesday it has received written requisitions to convene the EGM from Nexgram Holdings Bhd and founder-cum-former chief executive officer (CEO) of R&A Francis Tan Hock Leong, who is also being sued by the company.

According to R&A’s financial year ended Dec 31, 2015 (FY15) annual report, Nexgram’s shareholding stood at 6.83% as at April 20, 2016, while Tan owned 7.85%, of which 1.38% is held via his wife Cheoh Chun Lian.

Tan was redesignated as executive director in May 2015, while Sim Keng Siong was appointed CEO. Tan then stepped down as executive director on Dec 29 last year, citing “other personal business commitments”.

In their written requisitions, Nexgram and Tan are seeking to remove incumbent CEO Sim, together with three other independent non-executive directors — Chua Soo Seong, Lim Tiong Jin and Selva Rasan A/L Puspa Das.

To replace the three, Nexgram and Tan have put forth Rajendra Raja A/L S Govendaraj, Cheang Soon Siang, and Kamal Abdul Aziz to be appointed as new R&A directors.

In a separate filing with Bursa, R&A said its wholly-owned subsidiary R&A Telecommunication Sdn Bhd (RASB) is suing Tan, also a director in RASB, for having breached various director’s duties to the company.

RASB alleged that Tan failed to make statutory payments in a timely manner as required by law to the Employees Provident Fund, the Social Security Organisation, the Inland Revenue Board, and the Human Resource Development Fund.

RASB  in a lawsuit is claiming for RM1.38 million from Tan, on top of damages and interests.