KUALA LUMPUR (Jan 9): EKA Noodles Bhd said its board of directors has agreed to convene an extraordinary general meeting (EGM) on Feb 6, 2017.

This follows a board meeting held to discuss and contemplate whether the intended EGM on Feb 6 was legal.

"Without prejudice to the rights of the company and its shareholders at large and in line with the spirit of good corporate governance, the board had decided that the company would convene an EGM tentatively on Feb 6 to consider (including but not limited to) the businesses/agenda proposed by the requisitionists via the notice to shareholders," EKA said in a filing with Bursa Malaysia today.

It added that the notice of the EGM will be issued to the shareholders in accordance with the relevant requirements.

Nonetheless, EKA said it has engaged its solicitors Messrs Lim, Chong, Phang & Amy for legal advice.

"(That's because) the company is of the firm opinion that the requisitionists have failed to comply and will be failing to comply with the Companies Act 1965, the relevant listing requirements and the articles of association of the company in carrying out the notice to shareholders and/or the intended EGM.

"The notice to shareholders and/or the intended EGM (if so convened) is illegal, invalid and irregular," it added.

To recap, EKA had on Dec 30, 2016 received a notice to shareholders from Law Chong Kai, Fong Yit Meng and Vibrant Class Sdn Bhd – who together hold not less than 10% of EKA shares – seeking to requisition an EGM.

The three requisitionists are seeking to remove EKA chairman Datuk Sohaimi Shahadan, executive director Ahmad Zaffry Sulaiman, its non-executive directors Yee Yit Yang and Raja Nazrin Raja Ghazilla, as well as any other person appointed director following its last annual general meeting on May 26, 2016.

Its group managing director and largest shareholder Datuk Seri Chin Seak Huat was not named in the list. He owned 10.67% of EKA shares as at March 31, 2016.

At the same time, they are seeking to appoint Chan Soo Yean and Fong Yit Meng as executive directors, and Khairilanuar Tun Abdul Rahman, Datuk Dr Chin Yew Sin, Leong Woay Hong@Neoh Woay Hong, Law Chong Kai and Lim Choo Hooi as non-executive directors. Khairilanuar is also proposed for the role of chairman.

EKA fell into PN17 status on Sept 1 last year as its shareholders' equity on a consolidated basis was 25% or less of its issued capital. The Penang-based company has been loss-making since the quarter ended Sept 30, 2013, on lower sales and higher operating cost.

At 4.09pm, EKA shares were down 0.5 sen or 6.67% at 7 sen today, with 928,500 shares done, giving it a market capitalisation of RM21.84 million.