KUALA LUMPUR (May 22): Sabah-based gold mining company Bahvest Resources Bhd said the five shareholders who had recently filed a lawsuit against the company at the Kuala Lumpur High Court in an attempt to hold an extraordinary general meeting (EGM) to replace three directors of Bahvest, have withdrawn the suit.

They have also notified the court that they are not proceeding with their proposed EGM on May 25.

In a bourse filing on Monday (May 22), Bahvest said the five shareholders have withdrawn the originating summons, which was intended to compel the company to hand over its record of depository for the purpose of issuance of notice of the proposed EGM.

However, Bahvest had on May 17 announced that it will hold an EGM on June 13 after receiving the special notice of intention from the five shareholders — Marlex Trading Ltd, Innosabah Capital Holdings Sdn Bhd, Lim Nyuk Sang @ Freddy Lim, Yong Fen Yoo and Chong Tzu Khen — to move resolutions to remove and replace three directors of Bahvest. Thus, Bahvest had viewed the suit as “redundant”.

At the upcoming EGM, the five shareholders are seeking to remove non-executive chairman Datuk Seri Dr Md Kamal Bilal, managing director and chief executive officer Datuk Lo Fui Ming and executive director Lo Teck Yong, and to appoint Chong Tzu Khen, Law Ngia Meng and Chong Mee Fah @ Frederick Chong in their place.

As at May 17, Fui Ming held a 3.3% stake in Bahvest. He had ceased to be a substantial shareholder of the company on May 11. Prior to that, he held a 13.18% stake.

Last week, the Malaysian Anti-Corruption Commission (MACC) conducted a raid on Bahvest's wholly-owned subsidiary Wullersdorf Resources Sdn Bhd’s gold mine and business premises in Tawau, Sabah.

During the raid, the key management of Bahvest including Fui Ming and Teck Yong were also detained and remanded for several days by the anti-graft agency. During a court hearing, MACC had revealed that its action was precipitated by a complaint lodged to the agency and that it is investigating a case of cheating relating to inaccurate gold production figures.

At 2.26pm, Bahvest shares were traded up five sen or 35.71% at 19 sen, with 116.56 million shares done. Its market capitalisation stood at RM235.56 million.