KUALA LUMPUR (July 27): Shares of Scan Associates Bhd were down 0.5 sen or 6.25% this morning, following a move by two substantial shareholders of the company to remove four directors.

As at 10.51am, Scan Associates (fundamental: 0.15; valuation: 0) was trading at 7.5 sen, with 446,200 shares traded.

Its current prices gives it a market capitalisation of RM16 million.

To recap, two substantial shareholder of Scan Associates called for an extraordinary general meeting (EGM) to remove four directors and appoint four new ones.

In a filing to the Bursa Malaysia last Friday (July 24), Scan Associates (fundamental: 0.15; valuation: 0) said it had received a requisition under Section 144 of the Companies Act 1965 of EGM and the board will reply accordingly.

According the requisition notice, Hussin Othman and Datuk Dr Norbik Bashah Idris, who hold 10.17 million shares or 5.09% and 11 million shares or 5.5% respectively as at July 23, expressed their intention to call for the EGM for the said purpose.

The directors they seek to remove —  with immediate effect —  are chairman Mejar Ismail Ahmad (Retired), largest shareholder and executive editor Mak Siew Wei, independent and non-executive editor Datuk Nik Ismail Datuk Nik Yaacob, and independent director Roy George.
 
The duo also seeks to appoint chief executive officer Norbik Bashah, Nurul Huda Zaharol Natar and Nor Ramzani Abdul Rahman, Siti Sarah Zainal Abidin as directors with immediate effect.

They also moved a resolution to remove any director appointed at any time from July 22, up to and including the time of the conclusion of the EGM.