KUALA LUMPUR (Nov 11): The High Court has ordered the Golden Palm Growers Scheme (GPGS) to be wound up.

In a statement, Golden Palm Growers Bhd (GPG) said GPGS is to be wound up, and a liquidator to be appointed in line with the court's verdict today.

"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 it is seeking legal advice on the next steps and will inform the growers accordingly.

GPG and the growers had disputed the purpose of a valuation exercise on a plantation concession owned by GPG, whose assets are worth RM220 million according to valuer Raine & Horne International.

Another point of contention was also the choice of liquidators, as the growers had 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 which stipulated that GPG shall buy back an investor's interest if asked. The growers argue that since no timeline was given, it was up to them to decide when they wanted to pull their money out of the scheme. Thus, the 10% limit placed on the amount of funds that could be withdrawn contravened the agreement, according to the growers' legal counsel.

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

Today's motion stems from an originating summons filed by Jerry Ling Ngong Hiang and 208 other growers against GPG. The suit included an application to wind up GPGS.