Friday 29 Mar 2024
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KUALA LUMPUR (Oct 30): Asdion Bhd's 51%-owned Taz Logistics Sdn Bhd has taken legal action against former directors for breach of fiduciary duties.

In a statement to Bursa Malaysia, Asdion said it had last week initiated legal action against Taz Metals Sdn Bhd (first defendant), Tengku Azlan Ibni Sultan Abu Bakar (second defendant), Tengku Aslahuddin Ja'afar Tengku Azlan (third defendant), Tunku Jawahir (fourth defendant) and Datuk Mohamed Ridzuan Nor Md (fifth defendant).

Tengku Azlan and Mohamed Ridzuan had resigned from Asdion's board last month. Asdion said Mohamed Ridzuan had also resigned from the board of Taz Logistics last week.

"The claim against the defendants are conspiracy to injure, whilst against the 1st defendant is knowingly receipt of trust properties, the claim against the 1st, 2nd and 3rd defendants as knowingly assisting the 4th and 5th defendants to breach their fiduciary duties to Taz Logistics whilst the claim against the 4th and 5th defendants is for a breach of fiduciary duties towards Taz Logistics.

"An interim remedy is sought whereby the appointment of receiver and manager is sought over Taz Metals. The company (Asdion) is unable at this juncture to determine the impact of this action on the financial position of the company as the quantum that may be recovered is still unknown," Asdion said.

According to Asdion, Mohamed Ridzuan and Tunku Jawahir own the balance 49% in Taz Logistics, which is based in Kuantan, Pahang.

Following Mohamed Ridzuan's resignation from Asdion and Taz Logistics' boards, Asdion said it appointed Jason Minos Anak Peter as executive director of Asdion to oversee Taz Logistics' operations.

Asdion's share trade was suspended between 9am and 10am today in conjunction with the announcement. At 10.30am, the stock fell 5.5 sen or 8% to 64.5 sen for a market capitalisation of RM75.01 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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