KUALA LUMPUR (June 4): Penang-based D'Nonce Technology Bhd's new, single largest shareholder is now seeking to halt the hard disk drive contract manufacturer from holding an extraordinary general meeting called for by Singapore investment company Blackstream Investments Pte Ltd, to remove its current four-person board of directors.

In a stock exchange filing today, D'Nonce said it has received legal papers filed by Tan Than Kau and his private vehicle BM Synergy Holdings Sdn Bhd, to restrain the company from holding the EGM. The legal papers were received on Monday and named RHB Nominees (Asing) Sdn Bhd) as the first defendant, followed by P'ng Chiew Keem and D'Nonce.

According to the EGM notice D'Nonce sent out on May 28, Blackstream was the company's single largest shareholder with 24.14% held via RHB Nominees (Asing) at the time. Blackstream called for the EGM to supplant the current directors' line up with its own people after failing to nominate two directors to D'Nonce's board late last year.

But Tan subsequently emerged as the single largest shareholder of the company with a 24.209% stake as at May 29, comprising a direct 10.956% and an indirect 13.253%, after having upped his stake from the 22.4% he held as at March 21, as stated on the company's Annual Report 2018.

"The hearing of the Injunction Application is now fixed on June 7, 2019 at 9 am, at NCC 2, Kuala Lumpur High Court before the learned judicial Commissioner, Mr Ong Chee Kwan. The company will make further announcement on any development in due course," D'Nonce said in its filing today.

D'Nonce's board currently comprises independent non-executive chairman Tengku Ahmad Badli Shah Raja Hussin, executive director and chief executive officer Lim Teck Seng, independent and non-executive director Ng Kok Wah, and non-independent, non-executive director Datuk Yeo Boon Leong. Yeo is also a substantial shareholder with an 8.342% stake in D'nonce as at May 31.

In the EGM notice sent out on May 28, Blackstream had nominated its sole director Lim Shiang Kai, together with Lam Kwong Fai (Lin Guanghui), and Chong Kim Teck to be the company's new directors. Blackstream also sought to get shareholders' nod to remove any other person who may be appointed a director of D'Nonce from May 9 until the conclusion of the EGM.

It was Blackstream's second attempt to hold an EGM to remove the company's directors.

Earlier in February, Blackstream filed a lawsuit against Tan, D'Nonce and five others, claiming alleged conspiracy and abuse of process, after the company failed to call an EGM it requisitioned in December, 2018. Blackstream wanted to remove the directors' line up at the time after it disagreed with the board's decision to focus on and raise funds for property development.

D'Nonce also made headlines late last year after it announced it was suing its former CEO Law Kim Choon — who resigned last September after having held the post for about 16 years — for allegedly committing fraud and conspiracy, and for breaching fiduciary duties. Blackstream, however, had applied to intervene in the suit. The case is now set for hearing on July.