Latest news with #CA2016
New Straits Times
3 days ago
- Business
- New Straits Times
High Court orders compulsory winding up of TH Heavy Engineering
High Court orders compulsory winding up of TH Heavy Engineering New Straits Times KUALA LUMPUR: The High Court has ordered TH Heavy Engineering Bhd's (THHE) liquidation to proceed under court supervision, following concerns over how the voluntary process was managed. In a landmark decision, only the second of its kind in Malaysian legal history, the court ruled that the voluntary process failed to uphold the interests of creditors, especially independent ones holding the majority of THHE's debt. The consensus among independent creditors—who hold 74.6% of debts—alongside support from parties like NSF Engineering and the lack of opposition, presented a strong case for court-supervised liquidation, Justice Atan Mustapha Yussof Ahmad said in a written judgment. "The breaches of statutory provisions in the voluntary liquidation process, conflicts of interest of the interim liquidators, questionable circumstances surrounding the voluntary liquidation, and the compelling need for independent investigation all point inexorably to the conclusion that compulsory liquidation under court supervision is necessary," Atan said. The judge outlined the basis for granting the petition by Global Mariner Offshore Services Sdn Bhd (GMOS) and two other creditors under Sections 464(1) and (2) of the Companies Act 2016, including the appointment of independent liquidators. THHE was incorporated on Nov 18, 2003 under the Companies Act 1965, and was formerly known as Ramunia Holdings Berhad. The company was previously a public company listed on Bursa Malaysia, involved in the business of fabrication of oil and gas structures, construction services and management services. On April 28, 2017, THHE was classified as a PN17 affected listed issuer. Despite being granted eight extensions over a period of five years, THHE failed to submit an acceptable regularisation plan to address its PN17 status. Consequently, on 5 May, 2022, THHE was delisted by Bursa Malaysia. THHE's majority shareholder is Urusharta Jamaah Sdn Bhd (UJSB), a Finance Ministry-owned entity set up in 2010 to take over assets from Lembaga Tabung Haji. The court ordered THHE be wound up by the court under Section 464(1) of the CA 2016. It also ordered Lim Tian Huat and Chiang Teng Guan to be appointed as joint and several liquidators of THHE.
Focus Malaysia
26-06-2025
- Business
- Focus Malaysia
The day when SMI has all its AGM resolutions rejected by majority shareholders
PROPERTY developer South Malaysia Industries Bhd (SMI) which is facing backlash over governance concern has had all four resolutions proposed by its current board of directors 'rejected and voted down' during the company's 53rd annual general meeting (AGM) in Johor Bahru today (June 26). This decisive rejection came from proxies representing Target 1 Sdn Bhd, Honsin Apparel Sdn Bhd and HIQ Media (M) Sdn Bhd who collectively hold 50.05% of SMI's shares. 'Given this absolute majority, the outcome of the voting was effectively determined, rendering further polling unnecessary,' the company pointed out in a Bursa Malaysia filing 'Consequently, pursuant to an order from the Kuala Lumpur High Court dated June 20 arising from an application filed by (self-nominated director) Teh Chee Hoe, the AGM has been adjourned to a future date to be set by the Court. The four resolutions set out in SMI's Notice of the 53rd AGM were: To re-appoint Messrs UHY Malaysia PLT as auditors of the company until the conclusion of the next AGM at a remuneration to be determined by the directors; To approve the payment of directors' fees and benefits of up to RM350,000 to non-executive directors of the company and subsidiaries; To re-elect Latifah Abdul Latiff who is retiring by rotation given she has offered herself for re-election; and Authority to allot and issue shares in general pursuant to Sections 75 and 76 of the Companies Act 2016. 'This unprecedented outcome demonstrates shareholders' concerns regarding the governance and direction of the company, hence marking a pivotal moment for SMI and its stakeholders,' a market observer told FocusM. Earlier on June 17, SMI said it had rejected a proposal to nominate Teh and three others as directors at its AGM, citing violations of corporate and securities regulations. In a stock exchange filing, SMI had received the proposal on June 12 from Teh who nominated Ng Fun Kim, Ling Chi Hoong, Amy Tan Li Peng and himself for election to the company's board. 'Based on the investigations by the company, the SMI board of has been advised that Teh did not satisfy the requirements of Section 323 of the Companies Act 2016 (CA 2016),' noted SMI. 'Additionally, he (Teh) is also connected to Target 1 Sdn Bhd which has issued a notice of unconditional mandatory take-over offer dated Aug 20 on the company (SMI).' At the close of today's (June 26) market trading, SMI was down 0.5 sen or 1.54% to 32 sen with 1,000 shares traded, thus valuing the company at RM67 mil. – June 26, 2025
