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Magnus Energy’s dissenting shareholders seek to sue directors on company’s behalf
THE four Magnus Energy shareholders at the centre of a boardroom battle have applied to the High Court to sue seven current and former directors on behalf of the company over alleged breaches of duty.
The shareholders are Ong Chin Yew, Sng Lee Leng and two companies Blue Water Engineering and Idola Cakrawala International. Eldan Law, which represents the quartet, had sent Magnus notice of the action on Oct 25.
The seven current and former directors whom they seek to sue on Magnus’ behalf are: Seet Chor Hoon; Luke Ho Khee Yong; Kushairi Bin Zaidel; Ong Sing Huat; Ong Chin Chuan; Lim Kuan Yew and Koh Teng Kiat.
The plaintiffs are the same four shareholders who have requisitioned an extraordinary general meeting, set for January, to overhaul Magnus’ board.
In a Monday bourse filing, Magnus provided further details on the High Court summons and on an affidavit that former managing director Charles Madhavan had filed, which the company received from Eldan Law on Dec 26.
Besides naming the seven directors, the summons states that the plaintiffs are seeking authority to control the conduct of the action and any proceedings thereafter.
Meanwhile, Mr Madhavan’s affidavit provides a description of alleged breaches of duties by the individuals, in several transactions of Magnus, along with copies of documents that are referred to, Magnus said in its filing.
Magnus did not disclose further details from Mr Madhavan’s affidavit in the Monday bourse filing. The company is in the process of appointing a legal representative.
The Magnus EGM will be held on Jan 9, 2020, at York Hotel's Carlton Hall. Its shares have been suspended from trading since August.