KUALA LUMPUR (Sept 2): Apex Equity Holdings Bhd has once again failed to garner its shareholders' approval for the proposed adoption of a new constitution for the company.
At the group's annual general meeting (AGM) today, 105 shareholders with 101.55 million shares (representing 55.28% of votes) voted in favour of the new constitution, while 10 shareholders with 82.15 million shares (or 44.72% of votes) voted against it. It was the third time that Apex Equity failed to garner its shareholders' support for the constitution change.
For this special resolution to be carried, Apex needs at least 75% of votes cast being in favour it.
It first failed to gain shareholders' approval for the adoption of a new constitution at its extraordinary general meeting (EGM) on June 19 last year. This happened again at a subsequent EGM held on Nov 18.
According to the notice it issued to shareholders prior to the AGM today, Apex Equity said the new version of the constitution that it was seeking shareholders' nod on would be more structured and provide better clarity.
Meanwhile, five other ordinary resolutions that were tabled at the AGM today, which did not require the 75% approval rate, were carried. These were related to the reappointment of auditors, authority to issue and allot shares, a re-election of director, and the payment of director's fees, special fees and benefits.
A tussle has been ongoing between Apex Equity's minority and majority shareholders since early 2019, starting from the proposed merger of its unit JF Apex Securities Bhd with Mercury Securities Sdn Bhd, in which minority shareholder Pinerains Sdn Bhd sought to block a vesting order application by Apex Equity to proceed with the merger. This resulted in the court invalidating the shareholders' approval given for the merger to proceed.
Though the merger finally secured a second shareholders' nod last year, the vesting order — the last condition precedent that has to be fulfilled for the merger to be executed — has yet to be granted by the court. This was due to the adjournment of hearing because of an on-going court case in which another minority shareholder, Concrete Parade Sdn Bhd, is seeking to invalidate the business merger agreement between Apex Equity and Mercury Securities.
In the mean time, Apex has obtained the Bursa Malaysia Securities Bhd's approval for an extension until Jan 15, 2021 to complete the proposed merger and a related private placement.
Apex’s shares closed one sen or 0.91% lower at RM1.09 today, valuing the company at RM220.88 million. Year-to-date, the counter had risen 36.25% from 80 sen.
Edited by Tan Choe Choe
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