KUALA LUMPUR (April 7): Corrugated packaging services provider Ire-Tex Corp Bhd is taking legal action to claim RM11.5 million from its former director and substantial shareholder Datuk Tey Por Yee.

In a filing with Bursa Malaysia, Ire-Tex said it has filed a suit in the High Court, naming Tey, Lim Chye Guan, Future Rank Sdn Bhd, Mohd Zamzuri Zakaria and Musa Abu Bakar as defendants.

Ire-Tex claimed that Tey and Lim, as the group’s cheque signatories, had allegedly paid out RM11.5 million to Future Rank despite knowing or ought to know that there was no proper purpose for making such payment.

“The payment was received by Future Rank when it was known to Future Rank and their directors that there was no proper purpose or reason to receive the payment from the company (Ire-Tex),” claimed Ire-Tex.

Tey, 41,  was appointed as a director of Ire-Tex in May 2014 and resigned in February 2015.

He remained as a substantial shareholder with a 22.96% stake until Feb 24 last year, after selling his entire shareholding to his younger brother Tey Por Chen. The transacted price was not disclosed.

Por Chen eventually sold off all of these shares in several transactions and ceased to be substantial shareholder by Dec 5 last year.

Ire-Tex’s share price closed unchanged at 27 sen today, giving it a market capitalisation of RM37.19 million.