KUALA LUMPUR (Jul 2): Building materials manufacturer and property developer Multi-Usage Holdings Bhd has received a court summon from a group of 11 individuals including five of the company's 30 biggest shareholders, to annul an annual general meeting (AGM) held on June 29, 2015.

In a filing with Bursa Malaysia today, Multi-Usage (fundamental: 3; valuation: 1.5) said the 11 plaintiffs had on June 26, 2015 filed the summon in the Penang High Court against the company, its three joint company secretaries Tai Yit Chan, Lau Yoke Leng and Ong Tze-En, as well as Boardroom Corporate Services (Penang) Sdn Bhd.

Under the summon, the plaintiffs are also seeking that all resolutions approved in the June 29 AGM be cancelled immediately, and to hold a fresh AGM within 30 days from the date of the court order.

The company added that the summon also seeks an order that all resolutions as proposed by the plaintiffs in the written requisition dated April 27, 2015 be tabled in the fresh AGM, and that an order for compensation and other reliefs deemed fit and proper by the court be paid by the current directors to the plaintiffs.

"The court has fixed July 28, 2015 to hear the application of the plaintiffs. The board of directors of Multi-Usage will seek legal opinion on this matter," the company said, adding that further announcement(s) to Bursa Malaysia on any material development on the matter will be made in due course.

Its AGM on June 29 saw shareholders vote against the re-election of three directors including its independent non-executive chairman Abd Aziz Mat.

The other two were executive director Ang Hwei Chyn, who is also the son of Multi-Usage’s managing director Ang Kim Cheng @ Ang Teng Kok, and independent non-executive director Cheah Chin Huat.

Multi-Usage’s shareholders had also voted against the payment of directors’ fees amounting to RM119,250.

Only one resolution was passed during the meeting, that is, the re-appointment of Messrs Deloitte as its external auditor.

As at May 7, Kim Cheng was the single largest individual shareholder of Multi-Usage, with a 31.51% stake, followed by Tan Chew Hua and Topazvest Temasek Sdn Bhd, owning 29.08% and 29.07% respectively.

Last December, an extraordinary general meeting (EGM) was called by a group of individuals led by Multi-Usage shareholder Tan Seik Lang, to remove the entire board except for executive director Tan Chew Hua.

However, the EGM was not convened because Kim Cheng and the other four directors who were to be removed, had filed a summon with the Penang High Court, claiming that the proposed EGM was not bona fide, illegal and invalid and in breach of the Companies Act 1965. The suit is scheduled for full trial on Aug 17 and 18 this year.

In the suit, Kim Cheng and the other four directors had alleged that Seik Lang and parties acting in concert had wanted to gain control of Multi-Usage through the EGM, instead of making a mandatory general offer.

On Dec 18, 2014, a day before the said EGM, Multi-Usage had announced that there was an injunction order restraining Seik Lang and parties acting in concert from holding the meeting.

For the first quarter ended March 31, 2015 (1QFY15), Multi-Usage's net profit surged 53.49% to RM4.33 million or 8.22 sen per share compared with RM2.82 million or 5.35 sen per share in 1QFY14, on higher contribution from its property and construction segments.

Revenue for 1QFY15 rose 31.35% to RM15.96 million from RM12.15 million a year ago.

Multi-Usage shares fell seven sen or 5.34% to close at RM1.24 today, with a market capitalisation of RM73.91 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.)