KUALA LUMPUR (April 24): Iris Corp Bhd is suing its former chairmen Tan Sri Razali Ismail and Datuk Nik Azman Mohd Zain and former group managing director and chief executive officer (CEO) Datuk Tan Say Jim, as well as five former board members for losses incurred in relation to the subscription of Border Control Solutions Ltd (BCS) shares for £2.05 million (RM11.72 million).
The five ex-directors named in the suit include Tunku Datuk Seri Shahabuddin Tunku Besar Burhanuddin, Datuk Hamdan Mohd Hassan, Datuk Eow Kwan Hoong, Syed Abdullah Syed Abd Kadir and Datuk Noor Ehsanuddin Mohd Harun Narrashid, as well as one current director Chan Feoi Chun.
In a filing with Bursa Malaysia today, Iris said it has today commenced legal proceedings in the High Court here against the nine defendants.
"The company brought this action for loss suffered from the defendants’ failure to discharge their respective fiduciary duty, duty of fidelity and/or duty to exercise reasonable care, skill and diligence as directors of the company at that material time," it added.
Iris is seeking RM11.72 million for the sum paid to subscribe to BCS’s shares of £2.05 million, RM482,172 (£84,000) for the amount paid to Joseph Vijay Kumar as consultant fees, interest and other relief deemed fit by the Court.
"Save for legal cost arising from this litigation, this litigation is not expected to have material financial impact to the company as the two items had been fully impaired/expense of in previous financial year," it noted.
Iris said it will make the necessary announcements on further developments of the legal proceedings as and when there is a material update.
Iris shares closed down one sen or 5.41% at 17.5 sen today, with 39.81 million shares done, bringing a market capitalisation of RM519.1 million.