PETALING JAYA - Shareholders of timber-based company Nakamichi Corp Bhd have removed its chief executive officer (CEO) Lo Man Heng at an EGM here.
A source said the company's operations would be kept running as usual and that a new CEO would be announced in a month's time. When approached after the EGM yesterday, major shareholder See Tho Chan said the necessary announcements would be made when appropriate.
This is the second attempt by its shareholders to remove Lo, after failing to adopt the resolution at an AGM in June this year due to the High Court's decision to allow Lo's claim against two Nakamichi shareholders, Goh Kheng Peow and wife See, and Nakamichi for an ad-interim injunction.
This had earlier restrained the company from moving the resolution to remove Lo as a director. Goh and See collectively own close to 33 per cent of Nakamichi.
See also did not want to comment on any outstanding matters that the company had to deal with, saying appropriate announcements would be made in "due course".
Among the outstanding issues that Nakamichi are grappling with at this point in time are missing share certificates of its subsidiary Tamabina Sdn Bhd, a court case against Lo and a winding-up petition served upon the company by Tamabina.
Sources said the affairs of the company may also point to differences between two couples; Goh and See, and Tamabina's controlling shareholders Lo and Lai Yun Fong, who own a collective 34.3 per cent stake in Tamabina, according to a business report.
Nakamichi has a 51 per cent stake in Tamabina that it had bought from Lo's sister Shwu Fen and Yap Siaw Lin.
The stake, which it had bought in late-2007 for RM30mil (S$11.78mil), had a profit guarantee of an audited net profit of at least RM12mil (S$4.71mil) from financial year 2010 till 2012.
However, the share certificates of Tamabina are now missing and a police report has been lodged by Nakamichi.
There is also a court case pending against Lo by Nakamichi for a breach of fudiciary duties while he was in the company, and a shortfall for the profit guarantee from Tamabina.
Meanwhile, Lo has also filed winding-up petitions against Nakamichi, claiming RM11.8mil (S$4.63mil) from the company, including interests, which is being resisted by Nakamichi via its solicitors.