KUALA LUMPUR: German billionaire Andreas Heeschen-led investors who failed in their bid to vote out the current board of directors of KNM Group Bhd, have refused to recognise the outcome of the extraordinary general meeting (EGM), claiming irregularities in vote count.

In a pivotal EGM held today (Oct 16), Heeschen-led group's efforts to remove all the board members of KNM fell short, with only two board members, Tan Sri Zulhasnan Rafique and Steve Ho Soo Woon, voted out at the EGM.

The existing board, led by chairman Tunku Datuk Yaacob Khyra, received the majority support from shareholders to continue the leadership and execute a robust turnaround strategy as well as progress with the company's scheme of arrangement with creditors.

Following the EGM, Tunku Yaacob expressed gratitude to all shareholders.

"The board remains fully committed in their efforts to ensure their targets of debt settlement within nine months.

"This will be done through a partial initial public offering of Borsig, which in turn will ensure a profitable and sustainable future for KNM Group, its shareholders and all stakeholders," he said in a statement.

In a separate statement, Johor princess, Tunku Kamariah Aminah Maimunah Iskandariah Sultan Iskandar, together with Heeschen and other proposed board of directors, declared their non-recognition of the outcome.

Allegations of possible irregularities in the vote count during the EGM have led to Tunku Kamariah and her group demanding an immediate investigation into the matter. 

The group claimed that one resolution was not voted on with Heeschen's 323 million shares, resulting in a vote count of 634.5 million. 

"Strikingly, the other resolutions included Heeschen's shares and were found to be precisely 323 million in difference. This discrepancy has raised questions about whether other physical proxy forms were disregarded or overlooked in the total vote count."

It added that the total number of shares voted indicates a mere two per cent difference from the issued share capital, with both sides closely aligned in shareholdings.

"KNM denied our request for an independent lawyer to observe the vote count at the EGM. Maybe they have something to hide," said Tunku Kamariah.

She also raised concerns over five submitted live questions that were deemed irrelevant by the company secretary Lily Yin Kam May, who also serves as the company secretary for MAA Group Bhd. 

The questions were disregarded prior to voting on the resolutions during the EGM.

https://www.nst.com.my/business/corporate/2023/10/967817/german-billionaire-led-investors-fail-bid-oust-knm-board-demand