Court dismisses Iris’s claims against ex-board members over BCS investment

KUALA LUMPUR (Aug 22): The High Court has dismissed Iris Corp Bhd’s lawsuit against its former chairmen Tan Sri Razali Ismail and Datuk Nik Azman Mohd Zain and former group managing director and chief executive officer Datuk Tan Say Jim, in relation to losses incurred pertaining to the subscription of Border Control Solutions Ltd (BCS) shares.

The suit, filed in 2019, had also named as defandants, six former board members, namely Tunku Datuk Seri Shahabuddin Tunku Besar Burhanuddin, Datuk Hamdan Mohd Hassan, Datuk Eow Kwan Hoong, Chan Feoi Chun, Syed Abdullah Syed Abd Kadir and Datuk Noor Ehsanuddin Mohd Harun Narrashid.

In a bourse filing on Monday (Aug 22), Iris said the court awarded costs in the sum of RM85,000 each to Razali, Tan, Tuanku Shahbuddin and Hamdan.

It also awarded RM85,000 collectively to Eow, Chan, Syed Abdullah and Nik Azman.

Iris said it is seeking legal advice on the next course of action on the outcome of the court’s decision.

In its suit, Iris had sought from the defendants, RM11.72 million for the sum paid to subscribe to BCS’s shares of £2.05 million, and RM482,172 (£84,000) for the amount paid to Joseph Vijay Kumar as consultant fees, and other relief deemed fit by the court.

The group had accused the defendants of allegedly failing to discharge their "respective fiduciary duty, duty of fidelity and/or duty to exercise reasonable care, skill and diligence as directors of the company".

Shares of Iris ended 1.5 sen or 9.68% lower at 14 sen on Monday, giving the group a market capitalisation of RM457 million.