This article first appeared in The Edge Malaysia Weekly on June 5, 2017 - June 11, 2017

THE boardroom tussle at Stone Master Corp Bhd has taken a turn for the bizarre, resulting in a deadlock.

Datuk Karen Lee Fong Yin, the major shareholder of Stone Master, led a bid to remove the company’s managing director Datuk Koh Mui Tee and executive director Datuk Lee Hwa Cheng in an extraordinary general meeting (EGM) last Tuesday.

Fong Yin told the media that 91.48% of the shareholders who attended the meeting voted for the resolutions to remove Koh and Hwa Cheng in a “valid” EGM.

Koh, however, claims that he remains the managing director and that he still possesses executive power over the operation of Stone Master because the meeting was “invalid”.

Fong Yin’s faction maintains that the EGM is valid until the other faction can prove that it isn’t, while Koh’s camp says it is  invalid until the other party can prove otherwise.

In an email reply, Bursa Malaysia says the validity of EGMs is not an area that is regulated under the Listing Requirements and hence, does not come under the purview of Bursa.

At press time, the Securities Commission Malaysia and Minority Shareholder Watchdog Group had yet to respond to enquiries from The Edge on the validity of the EGM.

It remains to be seen how things will transpire at Stone Master but one thing is for sure — Fong Yin will continue to fight and Koh is not ready to give up.

Last Thursday, Stone Master announced to Bursa that the company had changed its registered address from Medan Klang Lama to The Gardens South Tower.

When contacted, Fong Yin reveals that Koh had transferred some company documents from the “old office” to the “new office”.

“You can’t just relocate and simply make an announcement [on a change of address]. I have made a police report and they are very concerned about this matter,” she tells The Edge.

Meanwhile, Koh declares that he is operating the business of Stone Master in a “new office” now.

“We are operating outside the office. No worries, our operations are still continuing,” he tells The Edge.

It is learnt that Koh’s faction currently controls access to the Bursa LINK system, the listing information network that allows companies to post corporate announcements to the stock exchange.

Fong Yin, who is Stone Master’s single largest shareholder with a 22.29% stake, is frustrated that she has been denied access to the company’s office, and alleged that Koh had changed the security system.

“I can’t even go in to my own office. I am still an executive director, and he never said I am not. So why did he bar my entry? I just don’t understand,” she says.

In order to “protect” the company, Fong Yin says she had no choice but to use locks and chains to secure the entrance to the office.

“This is our company, not theirs, so what’s wrong with us protecting our office? In fact, this is a public listed company and it is not owned by me alone. He (Koh) said it is business as usual, then why did he move the documents out? What is he worried about?” she asks.

According to Fong Yin, Koh subsequently sent some people to break the chains and removed company documents, using two lorries, last Thursday morning.

Fong Yin reiterates that Koh was removed not just by her, but also other shareholders who attended the EGM. Hence, she has no choice but to continue to fight.

“I feel grateful that many people are supporting me now. They have so much trust and faith in me, I can’t let them down. For the sake of the company and its shareholders, I will not give up, no matter how tired and how sad I am,” a visibly emotional Fong Yin says.

Meanwhile, Koh says he feels sad that his once cordial relationship with Fong Yin’s faction, initially built on trust, has turned sour over a dispute.

“There is so much to say, but in short, I’m sad that things have turned out this way from what was very promising at the beginning. It is a big loss for Stone Master. I almost turned this company around in grand style,” he says.

Stone Master, which has been classified as a PN17 company since last December, trades in tiles and ceramic ware and has been loss-making since FY2006.

As The Edge was going to print,  Stone Master announced that it had obtained an interim injunction order to restrain Fong Yin from giving any effect to the May 30 EGM.

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