CEO Morning Brief

Classita's Largest Shareholders Fail in Bid to Initiate Contempt Proceedings Against Company

Publish date: Tue, 21 Mar 2023, 08:43 AM
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TheEdge CEO Morning Brief
Classita's largest shareholders fail in bid to initiate contempt proceedings against company

KUALA LUMPUR (March 20): The High Court has dismissed the application by two shareholders of Classita Holdings Bhd, formerly known as Caely Holdings Bhd, to commence contempt proceedings against the company and its directors and lawyers.

Classita’s largest shareholder Datuk Seri Tee Yam and former executive vice chairwoman Datin Seri Jessie Wong Siaw Puie had filed the application as part of their legal action against the company to recover RM3.96 million in alleged advances.

Dismissing the application on Monday (March 20), the court ruled that Tee and Wong had failed to show a prima facie case of contempt on their allegations of witness intimidation and tampering of evidence.

“The court will not exercise its discretion to grant leave pending current investigation by the police,” the court added.

Besides Classita, the application named the company’s executive directors Francis Leong Seng Wui and Kuan Poh Huat, executive chairman Ng Keok Chai, as well as its lawyers Wilson Lim Mao Shen and Huam Wan Ying.

The application was filed over allegations that the duo's witness, Classita’s former chief financial officer (CFO) Ting Yi En, had been threatened by the company’s lawyers to modify his testimony.

On March 2, Tee and Ting lodged police reports against Leong, Lim and Wan over the alleged witness intimidation.

Tee and Wong alleged in their application that on Feb 5, Wilson and/or Huam intimated Ting to change the contents of his affidavit and pressured the ex-CFO to pre-sign the signing page of a drafted affidavit in the absence of a commissioner of oath.

However, the court in its decision said there was no explanation from Tee and Wong on the role of their lawyers who were also present at the Feb 5 meeting with Ting when he met with Classita’s lawyers.

Additionally, Classita said it had on March 15 filed an application to cross-examine Ting on his affidavit (Enclosure 18) as evidence at the hearing of a summary judgement application on April 5.

The company also sought for the proceedings of the summary judgement application to be stayed until the cross-examination application was concluded.

Classita said it filed the cross-examination application as Leong contacted Ting to verify certain averments which Leong believes to be not accurate, adding that there is also alleged documentary proof that the ex-CFO confirmed that the averments were not correct and he had instructed his lawyer to make amendments when the draft affidavit was shown to him.

“Enclosure 18 was filed without the amendments being effected as instructed by Ting,” the company said, adding that the cross-examination application was filed to ascertain the truth of the ex-CFO's averments in Enclosure 18.

The court fixed the matter for case management on March 28. Tee holds 49.38 million shares or 19.12% in Classita, while Wong owns 4.87 million shares or 1.89%.

In a separate filing on Monday, Classita notified that founder Datin Fong Nyok Yoon has ceased to be a substantial shareholder in the company after offloading 21.06 million shares on March 17, while Ng Keok Chai acquired 13.86 million shares, bumping up his stake to 13.86 million or 4.09%.

Shares in Classita ended two sen or 10.81% lower at 16.5 sen, giving the company a market capitalisation of RM54.47 million.

Source: TheEdge - 21 Mar 2023

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