No certainty that ecoWise's EGM can convene after deputy CEO's new injunction application

STRIFE-HIT ecoWise Holdings' deputy chief executive Cao Shixuan has applied for another injunction before Singapore's High Court against the convening of an extraordinary general meeting (EGM) to remove him from his post.

The outcome of the application is unknown at this point, but ecoWise's board of directors is "unable to give further information as to when or whether the EGM will take place", it said in a bourse filing on Wednesday (Nov 24).

Cao's injunction application was filed through his lawyers at CNPLaw on Nov 12.

Shareholders' earlier call for an EGM, for the same purpose, was brought to an end after the High Court in August granted an interim injunction against the meeting.

Fourteen shareholders - holding over 118 million ecoWise shares or approximately 12.5 per cent of the total number of the company's paid-up shares - then called for another EGM, in a notice dated Oct 22.

The resolutions to be tabled at this EGM include the removal of Cao as director of the company and "for all necessary steps to be taken to remove him from all appointments with the company, its subsidiaries and its associated and investee companies".

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In ecoWise's most recent bourse filing on Nov 24, it reiterated that the said shareholders "do not have any faith, trust and/or confidence in (Cao's) ability and intention to act in the best interests of the company, its shareholders and/or creditors".

In response to queries from Singapore Exchange Regulation (SGX RegCo), ecoWise noted that the relevant shareholders have not clarified their plans for the company, notwithstanding the company's queries about their plans.

In particular, chief executive Lee Thiam Seng, who has been involved in a publicised tussle with Cao, had responded that he is "not required to disclose his plans for the company, in his capacity as a shareholder calling for an extraordinary general meeting", the board said.

In response to SGX RegCo's queries on the rationale for appointing 3 additional directors to the board, Lee, via his solicitors, told the company these appointments were "intended to not only add fresh perspective but also to further stabilise the board".

"The majority of the board (3 out of 5 directors) are presently embroiled in ongoing litigation against each other in the Singapore High Court, with the company named by Cao as a defendant," he had said.

Shares of the Catalist company have been suspended from trading since June 18. They last traded at S$0.078.

READ MORE:

• More information needed from requisitioning shareholders calling for EGM: ecoWise
• ecoWise shareholders call for yet another EGM to remove deputy CEO, appoint new directors
• ecoWise's EGM resolutions, even if passed, will not be valid: board
• ecoWise responds to CEO's allegations; says it 'regrets' the forum he used
• ecoWise CEO 'shocked' by recent developments; alleges decisions were taken without his consent
• ecoWise shareholders to convene extraordinary general meeting after company flip-flopped on earlier decision to do so
• How far do a CEO's powers reach?