D’nonce, six others named defendants in lawsuit

PETALING JAYA: D’nonce Technology Bhd and six others have been named as defendants in a lawsuit filed by its substantial shareholder, Blackstream Investments Pte Ltd.

According to Bloomberg data, Blackstream Investments is D’nonce’s largest shareholder with a 24.98% stake.

The group, in a filing with the stock exchange, said the plaintiff had filed an Amended Writ and Statement of Claim, naming the group along with Kuah Choon Ching, Lee Eng Sheng, Ang See Ming, Lim Kuan Yew and Chee Wai Hong as defendants on Dec 14, 2018, and adding Tan Than Kau as a further defendant on Jan 18, 2019.

It said the suit was grounded on alleged conspiracy and abuse of process in relation to a suit commenced by the company, and for not calling an EGM as required by a requisition letter dated Dec 3, 2018 from Blackstream Investments for the purpose of removing the company’s board of directors at the material time.

“The plaintiff also sought for an injunction to restrain the defendants from proceeding with the EGM scheduled on Dec 26, 2018 to vote on the proposed private placement exercise and for the court’s determination on several questions in relation to the requisition notice,” it said.

An interim injunction was granted by the Penang High Court on Dec 24, 2018 and the High Court has allowed the injunction, pending the disposal of the suit.

However, D’nonce noted that it had already announced that the private placement exercise had been called off due to unfavourable market conditions.

It was reported in December last year that Blackstream Investments was calling for an EGM to remove the group’s directors, following a disagreement with the board’s decision to focus on and raise funds for property development.

In the filing yesterday, D’nonce also announced that it had filed a defence and counterclaim to the suit, and has added Law Kim Choon, the former managing director and group CEO of the company, as a defendant to the counterclaim.