KUALA LUMPUR (March 13): Five shareholders of Classita Holdings Bhd, formerly known as Caely Holdings Bhd, are seeking the court's permission for them to take legal actions on behalf of the lingerie maker against its board members and vendor.

The five shareholders are seeking permission from the Kuala Lumpur High Court to act on behalf of the company in a suit filed in the Ipoh High Court, plus another suit filed in the Shah Alam High Court, and the suit in the Court of Appeal, according to the company’s filing with Bursa Malaysia.

Besides, they also intend to initiate legal action on behalf of Classita against the company’s board as well as a vendor for breach of fiduciary duties, fraud, unjust enrichment and/or conspiracy to injure the company in relation to its acquisition of shares in Kepayang Heights Sdn Bhd and other related transactions.

The board members who they want to sue are executive director Francis Leong Seng Wui, Kang Chez Chiang, Ng Keok Chai, Krishnan Dorairaju, Chong Seng Ming, Datuk Mior Faridalathrash Bin Wahid, Kenny Khow Chuan Wah and Chin Boon Long; the other parties are Kepayang Heights and Harvest Miracle Capital Bhd.

The five shareholders who initiated the originating summons are Datuk Seri Tee Yam, Datuk JP Low Kok Chuan, Leow Boon Kin, Zhang Jia and former executive chairwoman Datin Seri Jessie Wong Siaw Puie. Collectively, they own 67.2 million shares or a 19.82% stake in Classita.

Tee Yam is the largest shareholder among the five, holding 49.38 million shares or a 14.57% stake.

Accompanying these claims is the shareholders’ request for the court to grant leave to require the company to provide them with full cooperation in relation to the four legal matters.

Classita had filed a suit in Ipoh against 12 defendants — including its founder Datin Fong Nyok Yoon and her husband former managing director Datuk Chuah Chin Lai — to recover allegedly misappropriated funds from Caely (M) Sdn Bhd (CMSB) amounting to RM30.55 million.

The other 10 were named as defendants for their alleged conspiracy with Chuah and Fong to cover up the misappropriation and breach of fiduciary duty. The company had in November 2022 filed a notice of discontinuance to discontinue its claim against the defendants.

Similarly, Classita’s suit in Shah Alam also named Fong, Chuah and 10 of the company’s former directors as defendants. The company accused Fong and Chuah of allegedly misappropriating RM30.55 million from CMSB while asserting that the former board failed to disclose the misappropriation.

The other 10 named as defendants in the suit were Siow Hock Lee, Ooi Say Teik, Hem Kan @ Chan Hong Kee, Ng Boon Kang, Tan Loon Cheang, Datuk Wira Ng Chun Hau, Lim Chee Pang, Lim Say Leong, Ben Hong Shien and Gok Ching Hee.

As for the matter at the Court of Appeal, it concerns Messrs Bachan & Kartar acting on behalf of the company in filing a notice of application in the Ipoh court without the authority and mandate of the company.

Shares in Classita ended down 2.5 sen or 9.8% at 23 sen, giving the company a market capitalisation of RM76.48 million.