I have written several times about Xian Leng, for instance here and here.
The company announced today the below.
I just ask the readers one question: "is this justice?". I am speechless.
Reference is drawn to the abovementioned suit which came up for trial on 17 November 2014, the Board of Directors wishes to inform that pursuant to the proposals letters issued by the Defendants dated 11 November 2014 and 12 November 2014, a consent order had been recorded before the Muar High Court Judge i.e. Dato’ Haji Zainal Azman Bin Abd. Aziz, wherein the terms of the said Consent Order are as follows:
1.The 1st and 3rd Defendants pay jointly a sum of RM500,000.00 to the Plaintiff without admission to any liability whatsoever and not compensatory in nature;
2.The said sum of RM500,000.00 must be fully paid by the 1st and 3rd Defendants to the Plaintiff on or before 1 December 2015 either by way of progressive payments or lump sum payment;
3.The Plaintiff withdraws the suit against the Defendants without any order as to costs and without liberty to file afresh.
The Board of Directors also wishes to inform that the following legal opinions were given by our legal adviser, Krish Maniam & Co. in their letter dated 13 November 2014:
1.The evidence is still has gaps which insufficient to complete the entire picture and present it before the court as a complete cause of action;
2.The trial and subsequent appeal processes may take years to complete. By the time the recovery process is to commence, the Defendants could have already become financial unstable and / or bankrupt. In addition, the 2nd Defendant’s health has deteriorated of late after suffering a stroke in September 2013;
3.There is a risk that at the end of the trial when assessment of damages is carried out, Company may not even be able to recover any significant amount of money;
4.The Honourable Judge had from time to time reminded counsels for the Defendants and Plaintiff that the matter is resolve amicably as the Plaintiff Company is an on-going concern and ought to concentrate on restructuring and rebuilding itself.
After perusal through the legal opinion, majority of the Board member in the meeting held on 13 November 2014 agreed that the Company should take this opportunity of moving forward and concentrating on making the Company stronger and profitable, thus accept the proposal set out by the Defendants and record consent before the High Court Judge.
Dear sir,
ReplyDeleteYour article appeared to indicate that a closure is now provided to the episode of missing Xian Leng millions that was never properly explained by management. It appeared that now the management of Xian Leng wants to forget the episode and move forward. A fitting closure on the civil side of this affair - a recovery of RM500,000 to the loss of RM50,000,000?
Xian Leng had, for some years prior, had a good track record. It was a stock (implicitly?) recommended by Dr Neoh, a Malaysian stock market analyst of good repute. Based upon his fundamental analysis recommendation, many have purchased this stock some years back. The share price had not recovered to the level of the pre-episode days and therefore many are still suffering loss ( capital and interest).
Many investors believed that the Xian Leng's share price collapse due to this reported "unexplained loss" of countless millions, which was supposed to be investigated by the authorities. Xian Leng remained comatose for the years beyond the episode.
Have the authorities now concluded their investigations into this case and make a report to the attorney general? The inability to publicly explain the findings of the investigation is a serious blow to corporate governance and will remain a black mark in Malaysian Securities annals.
Did I miss the report by the authorities?
Thanks for your comment. I have contacted the authorities regarding this matter, let's wait for their answer.
ReplyDelete