INVESTMENT holding firm M Development - formerly known as NTI International - said on Thursday that a series of "undisclosed interested party transactions" under its subsidiary Winsta Holding and its group of companies (collectively known as Winsta Group) constitute "actionable wrongs and breach of duties" on the part of certain executive directors and officers of the Winsta Group.
These undisclosed transactions were uncovered in an interim report by accounting firm KordaMentha, which has been conducting an ongoing internal audit of Winsta Group.
According to a statement by M Development, Winsta Group had commenced legal proceedings after market closed on Wednesday against 13 defendants, including former director Sim Pei Yee, as well as persons and entities related to Ms Sim.
The statement said: "Winsta Group will be taking steps to suspend all executive functions of Ms Sim, as well as the other executive directors and officers who have been named co-defendants in the legal proceedings."
Meanwhile, the Winsta Group is in the process of appointing a professional management agent to assist in the company's operations.
M Development said that utmost care will be taken to ensure that the business and operations of the company are not affected by the ongoing matters.