It’s generally not newsworthy, in and of itself, when a shareholder gives notice to a Bermuda company to convene a Special General Meeting under section 74 of Bermuda’s Companies Act 1981.
But it becomes a bit more newsworthy when the section 74 Notice proposes a shareholders’ resolution to appoint 6 new directors, with a specific mandate to carry out an independent investigation into the Company’s affairs, and with a view to considering whether or not a full forensic audit should be carried out.
It becomes even more newsworthy when such a proposal comes against the background of allegations that:
- the Company’s share price has fallen 95% from its IPO price;
- the Company has failed to declare dividends despite reported profits and a reported cash reserve;
- the Company has failed to deliver its 2015 accounts or audited financial statements;
- various independent, non-executive directors, and members of the Audit Committee, have resigned;
- the Company’s corporate secretary and resident representative in Bermuda (Codan Services) has resigned; and
- the Company has been suspended from trading its shares on Malaysia’s stock exchange (Bursa Malaysia).
This might be a story worth following …
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