Classita's former directors drop legal challenge on legitimacy of EGM

TheEdge Thu, Apr 27, 2023 08:22pm - 11 months View Original


KUALA LUMPUR (April 27): Classita Holdings Bhd's former directors have decided not to continue with their legal bid to challenge the legitimacy of an extraordinary general meeting (EGM) held in June last year.

The EGM had resulted in the removal of these ex-directors — Loh Ming Choon, Jessie Wong Siaw Puie, Sin Hock Min, Mohamad Hanafiah Zakaria and Koo Chen Yeng. Koo is the daughter of Classita substantial shareholder Datuk Seri Tee Yam @ Koo Tee Yam.

At a case management session in the Court of Appeal on Thursday (April 27), the appeal by the ex-directors was struck off at their request.

“As such, the hearing date fixed on May 12, 2023 is vacated,” said Classita in a stock exchange filing.

Classita’s executive chairman Ng Keok Chai said in a statement that the latest development was “proof that all parties recognise that the EGM was held and conducted in a proper manner within the guidelines and regulations”.

“The current board of directors will ensure that there are no improper or illegal misconducts in its day-to-day operations of the group,” he said.

Ng said the management is working to expand the main income generating lingerie business and revive the property development and construction businesses.

The latest development came after Classita, formerly known as Caely Holdings Bhd, reached a settlement with Tee Yam and Wong over a RM3.96 million advance the latter provided to the loss-making Perak-based lingerie and apparel maker.

Classita also updated on Thursday that its new joint venture with its Indonesian counterpart to increase the lingerie production and to expand its distribution networks via the incorporation of PT Classita Indonesia Intimates has commenced operation following the completion of the manufacturing plant in February.

The group said it is also engaging subcontractors for its manufacturing business in Myanmar and Bangladesh to control manufacturing costs as the labour and operating costs in these countries are relatively lower compared with Malaysia.

“With the above initiatives and future-proofing measures, we believe that we will be able to greatly reduce our operational costs, increase our profit margins and eventually turn around the group,” Ng said.

Shares of Classita closed two sen or 12.5% higher at 18 sen on Thursday, giving the group a market capitalisation of RM62.24 million.

Read also:
Classita reaches settlement over RM3.96m advance provided by Tee Yam, Jessie Wong

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