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Tiger Synergy rejects major shareholder’s ‘hijack’ claim over EGM

KUALA LUMPUR (Feb 18): Tiger Synergy Bhd today rejected the claim that its move to convene an extraordinary general meeting (EGM) this Thursday (Feb 20) is an attempt to hijack an earlier planned EGM for the diversified company on March 2.

The claim was made yesterday (Feb 17) by the company’s major shareholder, Safari Alliance Sdn Bhd, which had called for the March 2 EGM.

In a filing with Bursa Malaysia, Tiger Synergy said the EGM scheduled for Thursday is to facilitate the tabling of all proposed resolutions which includes that of Safari, for consideration of its company’s shareholders in an orderly manner.

It added that it had on Jan 20 informed Safari of the February EGM and requested Safari to withdraw the March meeting, as all resolutions have been incorporated and also to avoid any confusion to shareholders. 

It claims Safari, which has an 11.834% stake in Tiger Synergy, had refused to withdraw the March EGM without providing any reason.

On Feb 14, Tiger Synergy and its executive chairman Datuk Tan Wei Lian filed an originating summons at the High Court against Safari to declare Safari's notice to convene an EGM on March 2 as invalid.

“The company EGM is convened in the best interest of Safari and the rest of the shareholders, as it is held to accommodate all the multiple requests from various shareholders, and to allow the shareholders to decide the composition of the board of directors of the company at one single forum, instead of in piecemeal fashion.

“There is no question of hijacking as alleged by Safari, as it was done in the best interest of the company,” the filing said.

The company also claims Safari’s suit is “an attempt to prevent the rest of the shareholders from considering the composition of directors of the company in one forum”.

“It is, therefore, improper and is contrary to the best practices of corporate governance,” Tiger Synergy said.

In a statement yesterday, Safari’s major shareholder Goh Ching Mun alleged Thursday’s EGM proposed by Tiger Synergy's current board of directors is an attempt to hijack the March 2 EGM planned by Safari.

Safari said it had called for an EGM to remove all seven current directors of Tiger Synergy and to reconstitute the board of Tiger Synergy.

Goh said Safari had called for the EGM because of concerns relating to the management and operations of Tiger Synergy, saying it stems from the sudden resignation of Tiger Synergy's external auditors Messrs UHY on Sept 11 2019, without any reasons given.

“Tiger Synergy’s move for an EGM to take place earlier (on Thursday) is clearly an attempt to hijack the meeting to serve the current board’s own agenda.

“It makes no sense to call for an EGM earlier on the pretext of saving time and cost from convening several EGMs, as apparently, there were multiple requests from various shareholders for the removal and appointment of directors.

“The way the two new directors have been nominated and how the existing five nominated directors, myself included, have been directed to take part in this new EGM, has also given rise to concerns on the motives of the current board,” Goh claimed.

Goh said he declined to be nominated to Tiger Synergy's board at Thursday's EGM, because he does not want to be held responsible for the company's unaudited 4QFY19 results, which has to be approved by the board and released by the end of February 2020, given several “red flags” in Tiger Synergy’s unaudited accounts.

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