KUALA LUMPUR (Oct 8): SC Estate Builder Bhd is appealing to the Court of Appeal for a stay of execution on a court order that is compelling it to hold an extraordinary general meeting before the end of October, as requisitioned by 10 shareholders, for the proposed removal of four directors to replace them with four new ones.

“The company wishes to announce that the company has filed a stay of execution pursuant to section of the Court of Judicature Act 1964 to the Court of Appeal today on Oct 8, 2021 in relation to the Shah Alam High Court’s decision on Sept 20, 2021 that has allowed the defendants’ application for a mandatory injunction to compel the company to issue a notice of EGM within 14 days from the date of the order, and to convene the proposed EGM within 28 days from the date of the order,” it said in a filing with Bursa Malaysia.

The 10 shareholders, who have a collective shareholding of more than 10% of the company's paid up capital, called for the EGM in May to remove SC Estate Builder's chairman and managing director Loh Boon Ginn and his brothers Loh Shy Tyug (non-independent non-executive director) and Loh Shy Ming (non-independent non-executive director), as well as Loh Boon Zheng (independent non-executive director).

To replace the four, the 10 shareholders have proposed to appoint two executive directors, namely Terence Cheah Eu Lee and Liau Chee Kiong, and two independent directors — Alwin Wong Khai Xiang and Saiful Nizam Mohd Yusoff.

Cheah is also among the 10 shareholders who called for the EGM. The nine others are: Michael Heng Chun Hong, Koh Boon Poh, Tan Pow Choo @ Wong Seng Eng, Ng Tiam Hock @ Tan Tiam Kew, Gan Boon Guat, Florence Lim Hui Leng, Kwong Ming Kwei, Yeo Bee Kim and Yap Siew Lynn.

On June 3, SC Estate Builder sued the 10 shareholders and filed for an interlocutory injunction in relation to the EGM requisition, but this was dismissed by the Shah Alam High Court on Sept 20.

Subsequently, SC Estate Builder applied for a stay of execution, while it also filed appeals against the High Court's decision to the Court of Appeal. The stay of execution, however, was later dismissed on Oct 4, which the company is now appealing.

SC Estate Builder's share price closed 30.30% or five sen lower at 11.5 sen on Friday, which gives it a market capitalisation of RM124 million.