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KUALA LUMPUR: Shareholders of Benalec Holdings Bhd have approved of a framework to settle all legal suits, grievances, disputes and claims between the company and its three former directors — Datuk Leaw Tua Choon, Datuk Leaw Ah Chye and Tua Choon’s son, Leaw Yongene.
Benalec on Dec 4 last year signed a heads of agreement (HoA) with the three parties that it had sued earlier to set out the framework.
In a filing with Bursa Malaysia yesterday, Benalec said shareholders had at its extraordinary general meeting convened for the proposed HoA ratification yesterday, approved the resolution which was voted by way of poll — with 60.9 million units for and none against.
To recap, Benalec had stripped the two brothers Tua Choon and Ah Chye of their executive positions in October last year after an independent audit committee found “strong and compelling” documentary evidence linking Tua Choon, Ah Chye, and Yongene to two land disposal transactions in which they had links to the purchasing entities, and thus breached their (Tua Choon and Ah Chye) obligations as executive directors.
Before an EGM was called to remove Tua Choon and Ah Chye as directors, both had resigned from the board in “a gesture of goodwill”. Benalec then dropped all legal charges against the three parties.
Subsequently, the sale and purchase agreements of the two land disposals had been rescinded and cancelled, and sales consideration refunded. Thereafter, the land was resold to another party, Teobros Development Sdn Bhd, at a higher price of RM48 per sq ft compared with the previous selling price of RM28 per sq ft.
At yesterday’s EGM, Benalec shareholders also approved the proposed disposal of 22 parcels of leasehold commercial land measuring 128.52 acres (52.01ha) for RM235.1 million cash.
This article first appeared in The Edge Financial Daily, on June 26, 2014.
