Update Harvest Court shareholder to remove current directors, appoint new board

[Cals]

Update Harvest Court shareholder to remove current directors, appoint new board

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 08 July 2014 14:09 KUALA LUMPUR (July 8): Harvest Court Industries Bhd's single-largest shareholder Zenith City Investment Ltd, plans to remove four existing directors in the construction firm and apoint new board members there. In a statement to the stock exchange today, Harvest Court said Zenith was colllaborating with Syawaras Sdn Bhd to remove the four directors as Harvest Court's financial performance had deteriorated under the existing board and management's stewardship. Zenith and Syawaras have proposed to remove Datuk Mohamed Amir Abas Zainal Azim, Ng Wai Han, Zainuri Zainal and Woo Mun Chee. Both Zenith and Syawaras have, meanwhile, proposed the apppointments of three new directors in Harvest Court. They are Datuk Seri Abdul Azim Mohd Zabidi, Datuk Chai Woon Chet, and Wong Kwai Wah. Zenith, a private entity held by Chai, owns 20.95% in Harvest Court. Abdul Azim owns Syawaras. Zenith and Syawaras will call for an extraordinary general meeting to seek Harvest Court shareholders' consent on the proposals. According to Zenith and Syawaras' intention notice, despite Harvest Court relying mainly on related-party transactions to generate revenue, Harvest Court still posted a net loss of RM3.72 million for financial year ended December 31, 2013. This compares to a net profit of RM140,000 a year earlier. Zenith had doubled its stake in Harvest Court in less than two months after becoming a substantial shareholder in the latter. According to Harvest Court's exchange filings, Zenith had emerged as a major shareholder in the former with a 10.1% stake on May 6 this year. Zenith had bought the Harvest Court shares on the open market. Zenith had, subsequently, raised its stake in Harvest Court to 20.95% on June 27 this year.