KUALA LUMPUR (March 21): Five shareholders of Classita Holdings Bhd, formerly known as Caely Holdings Bhd, are seeking an injunction to block the lingerie maker from convening an extraordinary general meeting (EGM) on March 27 to vote on the group's proposed rights issue.
The shareholders are attempting to stop the group from holding the EGM pending the disposal of their lawsuit in which they are seeking to take legal action on behalf of the group against its board members and a vendor.
Additionally, the injunction application also seeks to restrain Classita from holding any other EGM aimed at disposing of, changing, or diluting the composition of interest of the group’s shareholders.
“The sealed notice of application states that the hearing for the above matter is fixed on Friday (March 24), but the plaintiffs’ (shareholders) solicitors informed via its letter that the hearing is fixed on Wednesday (March 22) instead,” said Classita in a Bursa Malaysia filing.
The five shareholders who filed the lawsuit and injunction application 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.
In their suit filed last week, the five shareholders are seeking to initiate legal action on behalf of Classita against the group’s board as well as a vendor for breach of fiduciary duties, fraud, unjust enrichment and conspiracy to injure the group in relation to its acquisition of shares in Kepayang Heights Sdn Bhd and other related transactions.
The board members whom they wish to sue are executive director Francis Leong Seng Wui, Kang Chez Chiang, Ng Keok Chai, Krishnan Dorairaju, Chong Seng Ming, Datuk Mior Faridalathrash Wahid, Kenny Khow Chuan Wah and Chin Boon Long; the other parties are Kepayang Heights and Harvest Miracle Capital Bhd.
Besides this, the shareholders are also seeking the court’s permission to act on behalf of Classita in a suit filed in the Ipoh High Court, plus another suit filed in the Shah Alam High Court, and an appeal in the Court of Appeal.
Classita's proposed rights issue involves the issuance of up to 965.4 million shares on the basis of five rights shares for every two existing shares held, together with up to 579.2 million warrants on the basis of three warrants for every five rights shares subscribed for.
Shares in Classita closed unchanged at 16.5 sen on Tuesday (March 21), giving the group a market capitalisation of RM54.47 million.