Eight ecoWise shareholders to convene EGM to oust deputy CEO, appoint 3 directors

SINGAPORE (THE BUSINESS TIMES) - Some shareholders of beleaguered ecoWise Holdings have sounded their intention to convene an extraordinary general meeting (EGM) on April 14 via electronic means to remove deputy chief executive Cao Shixuan from both his office as a director of the group and all his appointments with the company and its associated firms, as well as to appoint three new directors.

The eight shareholders collectively own some 107 million ordinary shares of ecoWise, or a combined stake of 11.3 per cent. Two of the eight were also part of a group of shareholders that had requisitioned for an EGM to be held on Aug 13 last year to remove Mr Cao from his position, among other resolutions.

The EGM, however, did not proceed as Mr Cao had obtained an interim injunction from the High Court to prohibit the convening of the EGM.

All of the eight shareholders were also part of the group of shareholders that called for another EGM to be held on Nov 26 last year, but this EGM also fell through due to a "voluntary" postponement.

The three new directors that these shareholders have put forth to be elected as non-executive directors of ecoWise with effect from the date of the EGM are Messrs Danny Oh Beng Teck, Gan Fong Jek and Tan Poh Chye Allan.

No further details were given about these three people, only that they have reportedly provided the "relevant information" pursuant to the respective Catalist rules and have been interviewed by ecoWise's current sponsor, W Capital Markets.

The resolutions do not appear to be interconditional. If the resolution to oust Mr Cao is passed, the company will have only one executive director, Mr Lee Thiam Seng.

If the three new directors are appointed, ecoWise will have six non-executive directors until the company's next annual general meeting where shareholders can put the composition of the board to a vote.

ecoWise's board of directors said the special notice and the notice of the EGM do not specify the background and reasons for each of the proposed resolutions that were tabled, and do not contain information relating to the proposed new directors that are required under the Catalist rules.

The board also flagged that the deadline set out in the notice of the EGM for Central Provident Fund and Supplementary Retirement Scheme (SRS) investors to approach their respective agent banks and SRS operators is inaccurate. ecoWise does not intend to prepare a circular in respect of the EGM.

The EGM is slated for April 14 at 2.30pm. The board said it will update shareholders as and when material developments arise.

In a separate filing on Wednesday, ecoWise had disclosed that recent developments indicate "material uncertainty" of the company's ability to continue operating, in response to queries from the Singapore Exchange. Several Malaysian banks have been chasing the company for overdue payments totalling more than RM3 million (S$975,000).

The company is also still unable to pay a security deposit of $691,200 to the National Environment Agency for extending its existing lease on a property due to its current financial position.