Advancecon’s former deputy CEO goes to court to nullify his removal from office

• The originating summons also named Advancecon group chief executive officer (CEO) Datuk Phum Ang Kia as a defendant, Advancecon said.

KUALA LUMPUR (March 8): Advancecon Holdings Bhd’s second largest shareholder Lim Swee Chai has filed an originating summons against the company to nullify his removal as director last year.

The originating summons also named Advancecon group chief executive officer (CEO) Datuk Phum Ang Kia as a defendant, Advancecon said.

Lim holds an 11.46% stake in Advancecon, while Phum is the largest shareholder with 24.01%.

The duo incorporated Advancecon Sdn Bhd in 1993 to expand the construction business within the group, according to the company’s website.

Lim was previously the deputy group CEO in the company, but was redesignated as non-executive director in May 2022 before he was subsequently removed from office in August.

The removal, conducted in an extraordinary general meeting on Aug 9, 2022, follows a notice of requisition dated June 25 issued by Phum.

In his originating summons, Lim sought a court declaration that Phum does not hold the minimum 10% stake in Advancecon required to vote at the EGM, and as such has no locus standi to issue the requisition notice.

He also sought a court order to declare the EGM and all subsequent actions null and void, and sought general damages to be assessed by the court.

“As of the date of this announcement, the litigation is not expected to have any material financial and operational impact to the group,” Advancecon said.

“The company is seeking the necessary legal advice to defend on this matter,” it said.

Case management by e-review is fixed on March 20 at 9am, it added.

Advancecon shares traded unchanged at 25 sen, giving it a market capitalisation of RM123.19 million. In the last year, the counter has declined five sen or 16.67%.