KUALA LUMPUR (Oct 12): Caely Holdings Bhd founder and former non-executive director Datin Fong Nyok Yoon has withdrawn her suit against the company and six former directors "without liberty to file afresh and at no cost", according to a Bursa Malaysia announcement on Wednesday (Oct 12).
No reasons were given for the withdrawal from Fong, who owns a 7.38% stake in the Perak-based lingerie manufacturing company.
On April 26, Caely announced it had received an originating summons filed at the Shah Alam High Court by Fong seeking to prohibit the former directors from allotting and issuing new shares in the company through a private placement exercise pursuant to the resolution passed at Caely's annual general meeting (AGM) held on Sept 22, 2021.
The named defendants then were former executive chairman Datuk Wira Louis Ng Chun Hau, former executive director and former chief executive officer Lim Chee Pang, former non-executive directors Lim Say Leong, Beh Hong Shien, Noor Azri Noor Azerai and Datuk Seri Mazlan Lazim, and the company.
Besides that, Fong was also seeking the cancellation of the resolution to re-designate herself from executive director to non-independent non-executive director of Caely, which was also passed at the AGM. She also wanted the resolution appointing Noor Azri on March 23 and Mazlan on March 29 as directors of Caely to be cancelled.
Fong resigned from the board on Sept 15 citing health issues. Noor Azri and Mazlan too resigned on April 25, a day before the suit, saying they wanted to pursue other personal opportunities. The other defendants gradually left the board with all relinquishing their positions by May 31.
In the suit, she also wanted the special notices issued by Ng on behalf of Caely to the directors of Classita (M) Sdn Bhd, Caely Development Sdn Bhd and Marway Industries (M) Sdn Bhd and all dated April 5 to convene an extraordinary general meeting be cancelled.
Caely has been embroiled in active boardroom changes, police investigations and other lawsuits. Among them, Fong was named as one of 12 defendants over alleged misappropriation of RM30.55 million in funds from its wholly owned subsidiary, Caely (M) Sdn Bhd.
The company's current board of directors has four retired senior police officers — the first listed company on Bursa Malaysia to appoint that many law enforcement officers at this level.
It was reported that according to sources, officers raided the offices of Caely on Sept 14 based on a police report lodged with the Bukit Aman Commercial Crime Investigation Department by Datin Seri Jessie Wong Siaw Puie, who was Caely's executive vice chairman before she was removed from her post following a Kuala Lumpur High Court ruling on Aug 29.
Besides Wong, six other directors were also ousted together, including Caely's then group executive chairman Datuk Mike Loh Ming Choon.
Caely shares closed 0.5 sen or 1.75% lower at 28 sen on Wednesday, bringing it a market capitalisation of RM72.31 million.