KUALA LUMPUR - Aseana Properties Limited (LSE: ASPL), a Malaysian property developer listed on the London Stock Exchange (LON:LSEG), has filed a lawsuit against several former directors and related parties over claims of financial misconduct and breach of Malaysian law.
The legal action, initiated on Monday, December 19, 2024, targets former directors Helen Wong, Nicholas John Paris, Tan Hok Chye, and Thomas Patrick Holland, as well as Holland's spouse Jenny Lee and RSMC Investment Inc. The case has been filed at the Kuala Lumpur High Court, with the plaintiffs alleging wrongful approval of incentive schemes, unauthorized loans with excessive interest rates, and improper charges over company assets.
According to the plaintiffs, the defendants approved a scheme in October 2022, which included a divestment fee and break fees totaling USD 550,000, contrary to Malaysian regulations. Additionally, the company contends that on February 14, 2024, Paris and Tan authorized loans amounting to USD 1 million with a 15% interest rate, which exceeds the legal limit set by the Moneylenders Act 1951.
The plaintiffs further argue that the charged properties, valued at approximately USD 6,555,000, are disproportionate to the USD 1 million loan principal, and the sale of these properties could jeopardize the company's majority control in The Ruma Hotel and Residences, negatively impacting its financial standing and ability to sell the hotel as a controlling bloc.
The legal proceedings also include an application to prevent Helen Wong, Jenny Lee, and RSMC from enforcing charges over the properties in question, with a temporary undertaking halting any foreclosure proceedings until the injunction application is resolved.
The board of Aseana has committed to making further announcements regarding material developments in this case as appropriate. This report is based on a press release statement by Aseana Properties Limited.
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