Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on September 22, 2016.

 

KUALA LUMPUR: A major shareholder of Multi Sports Holdings Ltd’s (MSports), Paramjit Singh Gill, has called for a special general meeting (SGM) for the company’s shareholders to be held on Oct 4, to appoint six new directors to the board and carry out an independent probe into the company and group’s affairs.

The call came after the current board of directors failed to call for a meeting in time, following the submission of his previous demand for a meeting on Aug 16.

The China-based shoemaker is facing a real risk of delisting unless shareholders take action to protect their interests, according to his notice to shareholders of the SGM, dated Sept 9, that was posted by Bursa Malaysia yesterday.

“The company has been suspended from trading by Bursa Malaysia due to the failure to render its accounts and its professional advisors/service providers are resigning en masse, therefore there is a real risk that the company will be delisted, unless shareholders take action to protect their interests,” he warned. He issued the SGM notice to MSports shareholders on Monday.

Paramjit, the beneficial holder of 72.2 million shares representing 11.898% of the issued and paid-up share capital of MSports, raised several concerns about the company in the notice, including the decline of about 95% in the company’s share price to 3.5 sen as of April 9, compared with its initial public offering price of 80 sen.

He also highlighted the company’s failure to deliver its financial accounts and the crisis of confidence the company now faces due to the resignation of its independent non-executive directors and audit committee chairman.

He also registered his wish to appoint independent Malaysian directors with legal, management and stock market experience to the board who can review, investigate and regularise the company’s operation in China.

The team, he said, would also ensure the accounts are finalised and filed, with effective oversight and risk control in place, while improving transparency and accountability to shareholders.

The SGM is slated to be held at The Ballroom, Royal Selangor Club in Kuala Lumpur on Oct 4 at 3pm.

Paramjit has previously requisitioned twice for an SGM to be convened, once in May, to appoint five new individuals to the company’s board, and then again on Aug 16, which superseded the first requisition.

In his SGM notice, he said the company failed to call for the meeting by Sept 8, which was the 21-day deadline from the deposit date of the requisition on Aug 18, “therefore I am entitled by law to call for the meeting myself”.

Trading in MSports shares has been suspended since May 10 this year, after the company failed to submit its annual report for the financial year ended Dec 31, 2015. It was last traded at 3.5 sen a share.

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