High Court directs GIIB director Wong to enter defence against company's suit

TheEdge Fri, Jun 24, 2022 11:56pm - 1 year View Original


KUALA LUMPUR (June 24): Wong Weng Yew, who is one of seven parties that GIIB Holdings Bhd is suing over alleged breach of fiduciary duties and conspiracy to injure the group, has been directed by the High Court to enter his defence.

In a bourse filing on Friday, GIIB said the High Court directed Wong, the first defendant in the suit, to file his defence on or before July 14 during the first case management on Thursday (June 23).

Meanwhile, the plaintiffs — comprising GIIB and its 51%-owned subsidiary GIIB Healthcare Products Sdn Bhd — are to file their reply to Wong’s defence on or before July 28.

“All interlocutory applications are to be filed within four weeks from June 23,” said the technical rubber compound provider.    

The High Court also fixed July 7 for further case management for the plaintiffs to update on the service of the writ and statement of claim to Ewe Ee May — the sixth defendant in the suit.

Besides Wong and Ewe, the other defendants named in the suit were Yee Voon Hon, Yee Kwek Keong, Yap Kwee Heong, Glomaxes Latex Glove Manufacturer Sdn Bhd and Michelle Sammy.

On June 3, GIIB announced it had filed a legal suit against the seven defendants for, among others, conspiracy to injure the group and breach of fiduciary duties, and sought damages in the sum of RM103.58 million, and any other reliefs deemed fit by the court.

A week later, GIIB explained it was suing the seven because they had allegedly embarked on a series of acts to damage the group and its healthcare business under its 51%-owned GIIB Healthcare by unlawful means.

GIIB also claimed that Voon Hon — the second defendant named in its suit — and those affiliated with him had misappropriated GIIB and GIIB Healthcare's property.

GIIB said the acts leading to the filing of the suit include alleged abuses of process by Voon Hon with the agreement of two other defendants, Kwek Keong and Yap, in the filing of civil suits against the group by the first defendant, Wong.

The group also alleged that Wong, after his suspension pending investigation into his purported misconduct, had issued several media statements containing false and inaccurate allegations against GIIB and its directors.

Wong was suspended as GIIB’s executive director from March 28 to facilitate investigations into his management and handling of the group’s glove business and accounts, and subsequently terminated in mid-May. However, in a surprise about-turn at the end of May, GIIB announced that Wong had been redesignated as its non-independent, non-executive director.

GIIB, which is involved in the manufacturing and distribution of rubber compounds and related products, recently moved downstream into glove manufacturing through its healthcare unit, GIIB Healthcare. The group launched its glove manufacturing business in Nilai on May 16.

Separately, GIIB in another bourse filing said it had received proposals from three independent audit firms to undertake forensic investigations into suspicious transactions totalling RM11.49 million that Wong previously flagged prior to his suspension.

GIIB said the audit and risk management committee will assess and outline the scope of the investigation work with these audit firms independently, before shortlisting the preferred firm to recommend to the board for appointment.

GIIB also announced in separate bourse filings the appointments of H'ng Boon Keng, 50, and Lim Teck Seng, 52, as its independent, non-executive directors.  

H'ng is currently a partner of BKEH & Co PLT, while Lim sits on the board of Asia Poly Holdings Bhd, OCR Group Bhd and Lay Hong Bhd.

GIIB’s share price finished unchanged at 7.5 sen on Friday, bringing the group a market capitalisation of RM44.3 million.

Read also: GIIB claims sued parties sought to damage its business by unlawful means

GIIB files RM103.58m suit against seven defendants including non-executive director Wong over conspiracy to injure company

GIIB delays audit appointment, says still finalising scope of probe into suspicious deals

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