This article first appeared in The Edge Financial Daily on November 12, 2019

KUALA LUMPUR: The High Court has ordered the Golden Palm Growers Scheme (GPGS) to be wound up. In a statement, Golden Palm Growers Bhd (GPG) said the GPGS is to be wound up, and a liquidator be appointed in line with the court’s verdict yesterday.

“The growers are entitled to certain payments under the Trust Deed dated July 26, 2010 and the Management Agreement, the particular details of which the company will clarify with its solicitors,” it said, adding that it is seeking legal advice on measures to be taken next and will inform the growers accordingly.

GPG and the growers had disputed the purpose of a valuation on a plantation concession owned by GPG, whose assets are worth RM220 million, according to valuer Raine & Horne International. The choice of liquidators was another point of contention, as the growers lost faith in GPG’s management of GPGS.

In addition, both sides disputed a term in the investment agreement signed between the growers and GPG stipulating the latter shall buy back an investor’s interest if asked.

The growers argued that since no timeline was given, it was up to them to decide when they wanted to pull out of the scheme. Thus, a 10% limit placed on the sum that could be withdrawn contravened the agreement, according to the growers’ legal counsel.

The growers had launched a counterclaim for some RM36.5 million in monies due and owing, in addition to guaranteed yields.

Yesterday’s motion stemmed from an originating summons filed by Jerry Ling Ngong Hiang and 208 other growers against GPG. The suit includes an application to wind up GPGS.