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Magnus Energy reaches agreement with requisitioning shareholders to hold EGM on Jan 9

MAGNUS Energy Group will convene an extraordinary general meeting (EGM) on Jan 9, 2020 after coming to an agreement with requisitioning shareholders that had initially proposed to hold their own EGM.

Catalist-listed Magnus previously proposed to hold the EGM between Jan 17 and 21, while the requisitioning shareholders had proposed Jan 13 instead.

The shareholders are Ong Chin Yew, Sng Lee Leng and two companies Blue Water Engineering and Idola Cakrawala International.

To save costs, Magnus will hold the EGM to consider and approve its own resolutions and those proposed by the shareholders, it said on Wednesday night in its lawyers' response to the shareholders' solicitors' letter.

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The costs of any additional EGM held by shareholders would be paid by the company under Section 176 of the Companies Act.

Magnus had expressed concerns regarding the seven resolutions proposed by the shareholders, but said it is willing to put them up for a shareholder vote along with its own proposed resolutions.

It will put independent director Lee Chong Ping up for re-election and propose to appoint See Soon Hong, Wong Ann Chai and Lam Kuet Keng Steven John as new directors who will make up the new board.

It will also consider the appointment of Baker Tilly as the company's auditors, a resolution the shareholders had proposed.

It will do so through its own proposed resolution if its audit committee recommends to appoint Baker Tilly after reviewing its proposal along with other candidates.

Two of the shareholders' resolutions seek the removal of independent directors Seet Chor Hoon and Mr Lee.

Both have waived their rights to challenge the resolutions as long as they were passed in an EGM held by Magnus. 

Magnus and the requisitioning shareholders are currently discussing the issue of notice and circular for the proposed EGM.

If the shareholders still decide to proceed with their own EGM, Magnus said it is still committed to holding its own separate EGM.

The shareholders had previously proposed to hold their own EGM as they said Magnus had failed to hold the EGM they requested by the statutory deadline.

Magnus refuted suggestions that it had no intention to hold the EGM proposed by the shareholders, and said it had been "proactively and constructively" seeking to do so.

Shares of Magnus have been suspended from trading since Aug 23.