Transcorp says EGM requisition notice is invalid

CATALIST-listed Transcorp Holdings has taken the view that the notice by two of its shareholders to requisition an extraordinary meeting (EGM) to remove two directors and appoint new ones is invalid, it said in a bourse filing on Friday.

Transcorp, which sells and rents cars, wrote: "The company is of the view that valid notice had not been given for the proposed EGM on Sept 10. Accordingly, shareholders should take note that in the event the requisition shareholders proceed with the EGM, any resolutions purported to be passed at such EGM shall not be valid."

A request by the board of Transcorp to interview the proposed new directors was also not acceded to, it said.

Transcorp said it intends to seek clarification from the requisition shareholders Ronnie Chua Heng Chuan and Tsai Yeou-Tsang on how they wish to proceed in view of the EGM notice being invalid.

If they intend to continue with their proposal for the change of directors as set out in the requisition notice, the company will write to Mr Chua and Mr Tsai to seek more information on the status of the appointment of a new continuing sponsor.

Transcorp will also question Mr Chua and Mr Tsai on their plans to conduct an independent review into certain past transactions of the company, including the recovery of approximately S$8.6 million from two past transactions that are pending legal action by the company; plans to address the company's current cash company status pursuant to Rule 1017 of the Catalist Rules; and plans to resolve the company's issue of working capital sufficiency and going concern, which led to its trading suspension on Dec 26, 2019.

"The board will assess the information provided and assess whether the matters proposed by the Requisition Shareholders are in the best interest of the company," it said.