KUALA LUMPUR (Dec 8): A turbulance week with strange thing happened at Wintoni Group Bhd since 26 November 2015. Subsequently on 8 December 2015, when Bursa released statement the shares are suspended from trading starting 8 December until the company submit last quarterly report or risk extended suspension and potential delisting.

The public was puzzled when the news broke out on 2 December when company fails to submit quarterly report. Interestingly the largest major shareholder reported to Bursa he had sold down his shares since 26 November, which market believes is the main reason for Wintoni share crash, from 16 cents to as low as 4.5 cents in less than 5 trading days.

Questions remain as how did major sharehlders able to sell shares days ahead of public announcement? The reasons for the reported over 30% shareholding investor group strange entry and exit, left unanswered. Since the exit in a rush, whatever both sides are fighting remain questions more than answers, as one may argue as pure investment, at worst, explained as advanced speculation, yet the actions doesn't make investment sense.

At the same time, several lawsuits are still on going, with dubious claims between the hostile and defendance. Public document were reportedly being held by Kang, one of the shareholder which called for EGM. Even the hostile party lawyer is being suid. On the other hand, some shareholders are suing ex-directors, with subject matters already non existance, including completed business transactions and the retired directors which no longer sits on the board. More questions raised by minority shareholders if the hostile party really wants to do business or have other agenda by allowing the company to deteriorate.

Market is concerned if the interest parties are busy fighting control for the sake of control, and nobody focus on business. The future of Wintoni remains groomy until both sides clear off and dust settles. Invest wisely.

[Bursa Market Watch - Star Report]

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KUALA LUMPUR: Wintoni Group Bhd, which launched legal action against Foong & Partners for “failing, refusing and/or neglecting to hand over to the company documents and records” relating to its Sept 11 EGM, has learnt that the law firm had given the documents to one of the 10 shareholders who called for the meeting.

Nonetheless, the automation systems designer is going ahead with the legal proceedings against Foong & Partners, it told Bursa Malaysia on Monday. It is also taking legal action against the said shareholder.

To recap, the EGM was called to remove Wintoni Group’s entire board of directors. However, all the directors resigned on the day before the EGM.

According to Wintoni’s announcement to the bourse on Sept 11, the meeting’s chairman declared the resolutions to remove the directors as academic.
 

On Nov 11, Wintoni filed an originating summons against Foong & Partners, which had been named as the return address for the proxy forms in the requisitionists' EGM notice.

“Following the EGM, the defendant continued to hold on to possession of the meeting documents," Wintoni said in its Nov 13 statement. The meeting documents comprise the attendance lists, proxy forms, poll forms, poll results, and scrutineer’s report.

In the latest (Monday’s) announcement to Bursa, Wintoni said the company had been informed by two of the law firm’s partners Foong Chee Meng and Tan Chien Li, vide a letter dated Nov 13 (same date as Wintoni’s first announcement on the litigation), that the meeting documents had been handed over to Kang Choon Leu @ Kang Chee Sim.

Kang is one of the 10 shareholders of the company who had called for the EGM.

Wintoni did not mention when Foong & Partners gave Kang the documents. 

On Nov 18, the company, vide its solicitors, filed an originating summons against Kang for allegedly having possession of the meeting documents and the recovery of the same.

“Notwithstanding the above and after consultation with the legal advisers, the company will still carry on the legal proceedings against Messrs Foong & Partners,” Wintoni added.

The originating summons is not expected to have any material financial and operational impact on the company.

It said further announcements on the development of the matter would be made in due course.

While Wintoni is taking legal action for not receiving the meeting documents, the company has itself been late in submitting its quarterly results to the regulator.

Trading in Wintoni shares will be suspended from Tuesday, Dec 8, due to its failure to submit its quarterly financial report for the period ended Sept 30 within the specified time.

Wintoni shares closed at 6 sen on Monday for a gain of half a sen, with 50.193 million shares changing hands.

http://www.thestar.com.my/business/business-news/2015/12/07/wintoni-egm-documents-said-to-be-in-a-shareholders-possession/?style=biz