KUALA LUMPUR (Jan 15): Guidance Note 3 (GN3) company R&A Telecommunication Group Bhd has launched a legal action against its former executive director Francis Tan Hock Leong and Nexgram Holdings Bhd — both substantial shareholders of the company — and the Securities Commission of Malaysia (SC), restraining Tan and Nexgram from exercising their rights to vote in the company.

In a filing with Bursa Malaysia today, R&A said it is seeking an order to restrain Tan and Nexgram from issuing any notice or engage in any of the company's meetings until the duo "had submitted to and received the decision from the SC in relation to an intention of taking over of R&A through a restructuring scheme".

Additionally, R&A is seeking RM1.91 million from Tan and Nexgram, together with 5% interest rate on the judgement sum calculated "from the date of judgement until the date of full settlement" — whether jointly or separately from the two parties.

As at June 30, 2017, Nexgram held a 6.83% stake in R&A, with Tan holding another 6.47%.

R&A had on Dec 22, 2017 received a notice from Tan and Nexgram who called for an extraordinary general meeting (EGM) to remove all six directors in the company including Lim Tiong Jin, who R&A said was appointed to the position by the High Court on April 11, 2017.

On Jan 10, R&A said Tan attempted to withdraw a police report lodged by the company relating to unauthorised transactions worth RM4.2 million, prompting R&A to file a separate police report against him.

On Jan 11, R&A filed a notice of application against Tan, Nexgram and six Nexgram directors, on grounds that the two shareholders have committed contempt against the High Court for interfering with Lim's duties and for not withdrawing the earlier EGM notice.

Trading in R&A shares has been halted since Sept 14, 2016 after it failed to submit its regularisation plan to Bursa Securities. On Jan 4, the group requested for an extension of time up to July 3 to submit a new regularisation plan.