PROLEXUS Bhd, a leading apparel manufacturer, has issued another requisition notice for an extraordinary general meeting (EGM) of South Malaysia Industries Bhd (SMIB) in order to remove the current board of directors (BOD) and nominate two new directors for appointment.
The move comes after a recent court decision that has impacted shareholders’ rights.
“We regret to inform our members that the High Court of Malaya at Kuala Lumpur has ruled in favour of SMIB,” commented Prolexus’ executive director Tan Eik Huang.
“The court has struck out our originating summons compelling the BOD of SMIB to provide us with the company’s record of depositors (ROD) so that an EGM could be organised to allow the company’s shareholders to consider and vote on the resolutions related to changing SMIB’s existing BOD.”
Previously, Prolexus had filed the originating summons to request the SMIB’s BOD to provide the former with the ROD as it believed that it had a legitimate interest and statutory rights in obtaining such information as members of the company to convene an EGM.
However, the court has ruled that the summons was filed prematurely and that Prolexus had no cause of action at the time of filing the summons.
Notwithstanding this, Prolexus stressed that it is important to note that the court did not dismiss the merits of its rights as members of SMIB to request the ROD.
“We understand and respect the court’s decision and are committed to conducting ourselves lawfully and respectfully,” noted Tan.
“We do not take this as a setback but we remained committed to advocating the interests of our members and will continue to explore all legal avenues available to us. We thank our members for their ongoing support and trust while we remain focused on achieving our objectives lawfully and respectfully.”
In light of the court decision and SMIB’s announcement dated Feb 27 which stated that the ROD would be provided upon the company receiving a proper and correct notice, Prrolexus is currently collaborating with its legal counsels to address its main grievances in not providing the ROD as ventilated in the court previously.
This will enable SMIB’s shareholders to access the ROD and facilitate the organisation of an EGM. “We are hopeful that we can work together with SMIB to find a way to obtain this information in a lawful and respectful manner.” Tan added.
The primary objective of the EGM is to pave the way for a new leadership that can steer the SMIB towards recovery and growth.
By taking this action, the Prolexus aims to restore investor confidence, enhance shareholder value, and re-establish SMIB’s reputation and leadership. The EGM will also give shareholders an opportunity to decide the group’s fate.
Prolexus possesses sufficient shares in SMIB via Honsin Apparel Sdn Bhd and HIQ Media (M) Sdn Bhd to request an EGM. Under the Companies Act 2016, Section 310(b), any shareholder with at least 10% of the SMIB’s issued share capital has the right to call for an EGM. As Prolexus holds 10.01% in SIMB, it is entitled to exercise such statutory right.
At the close of today’s trading. Prolexus was up 0.5% or 1.09% to 46.5 sen with 477,500 shares traded, thus valuing the company at RM129 mil. – April 18, 2023
