Multi Sports gets six new di­rec­tors

> They are given man­date to carry out in­de­pen­dent in­ves­ti­ga­tions, un­der­take foren­sic au­dit of com­pany

The Sun (Malaysia) - - SUNBIZ - BY LEE WENG KHUEN

KUALA LUMPUR: Share­hold­ers of Chin­abased Multi Sports Hold­ings Ltd (MS­ports) voted in favour of ap­point­ments of six di­rec­tors at a time when con­cerns are raised over the com­pany’s fi­nan­cial ac­counts.

Paramjit Singh Gill, a 11.9% share­holder of MS­ports, yes­ter­day called for a spe­cial meet­ing for the ap­point­ments of Kasi­nathan Tu­lasi, Naren Anand Gill, Clarence Yeow Kong Chew, Cheh Chee Mun, Guan Swee Kee and Ter­ence Sel­vara­jah.

The were given the man­date to carry out an in­de­pen­dent in­ves­ti­ga­tion of the com­pany’s af­fairs, and even un­der­take a foren­sic au­dit, if needed.

How­ever, Paramjit noted the new di­rec­tors will have a meet­ing first be­fore de­cid­ing on the next course of ac­tion.

With the ex­pe­ri­ence that the new di­rec­tors have in le­gal is­sues and ac­count­ing, Paramjit said, they can help look into the com­pany af­fairs, in­clud­ing re­view­ing and in­ves­ti­gat­ing its op­er­a­tions.

“We’ll find out what has gone wrong with the com­pany. This is the fi­nal op­por­tu­nity to take ac­tion to pro­tect share­hold­ers’ in­ter­ests,” he said.

Worth not­ing is that prior to yes­ter­day’s ap­point­ments, MS­ports was left with only two di­rec­tors – chair­man Lin Huozhi and CEO Lin Liy­ing. Liy­ing is the daugh­ter of Huozhi.

Huozhi has been par­ing down his stake from over 30% in 2014 to the cur­rent 11.45%.

Speak­ing to re­porters af­ter the meet­ing, Paramjit said he had writ­ten a let­ter ex­press­ing con­cerns to the com­pany but the man­age­ment did not re­ply to queries.

Trad­ing in MS­ports shares has been sus­pended since May 10 fol­low­ing its fail­ure to sub­mit its quar­terly fi­nan­cial re­port ended June 30, 2016 as its ex­ter­nal au­di­tors RT LLP re­quires time to ver­ify the com­pany’s ex­pen­di­ture in­curred and bank bal­ances.

The counter was last traded at 3.5 sen, a 95% drop com­pared with its ini­tial pub­lic of­fer­ing price of 80 sen in 2009.

MS­ports swung to the red reg­is­ter­ing a net loss of RM8.93 mil­lion for the first quar­ter ended March 31, 2016 against a net profit of RM6.16 mil­lion in the pre­vi­ous cor­re­spond­ing pe­riod.

Paramjit said the reg­u­la­tors are mon­i­tor­ing the de­vel­op­ments in MS­ports closely.

“The Se­cu­ri­ties Com­mis­sion and Bursa Malaysia are very keen to know what is hap­pen­ing. They have been in touch with us,” he added.

ZULK­I­FLI ERSAL/ THESUN

Paramjit (third from left) and newly ap­pointed di­rec­tors (from left) Cheh, Naren, Ter­ence (third from right), Kasi­nathan and Yeow at Multi Sports Hold­ings Ltd’s spe­cial gen­eral meet­ing yes­ter­day.

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