Datapulse shareholder requisitions EGM to remove five directors

SINGAPORE - Mainboard-listed Datapulse Technology has received a requisition notice from shareholder and board director Ang Kong Meng to convene an extraordinary general meeting (EGM) to pass eight resolutions, it said on Thursday.

The resolutions seek to remove five fellow board members and appoint two others to the board.

The first resolution is to remove board chairman Aw Cheok Huat as the company’s director, with effect from the date of the EGM.

The second, third and fourth resolutions seek to remove Datapulse directors Choong Chee Peng Bert, Yeung Koon Sang and Lau Yan Wai from their posts, also with effect from the date of the EGM.

Mr Ang also requested that Mr Yee Chia Hsing be removed as the company’s director, but remain as its chief executive.

Additionally, he wants the board to appoint Mr Hor Siew Fu, independent director and chairman of the audit committee at water treatment company Memiontec; and Mr Perry Yuen, mergers and acquisitions partner at law firm Shook Lin & Bok, as directors of the company, with effect from the date of the EGM.

Another resolution includes removing directors who may have been appointed between the date of the requisition notice and the date of the EGM.

In his letter, Mr Ang said he was “concerned about the management” of the company and “the direction the leadership is taking”.

This comes as Datapulse accumulated losses in its last three financial years and

was placed on the Singapore Exchange Regulation watch list on June 6.

In its response to the notice, Datapulse’s board noted that the company’s losses and entry on the watch list were mainly due to the Covid-19 pandemic, which “greatly affected” the global hospitality industry.

It added that the company’s management had started a review of current operations in May 2023.

Datapulse on June 14 said it will be appointing a financial adviser to carry out a strategic review.

Mr Ang flagged concerns about the appropriateness of Datapulse’s current board size as another reason for the requisition notice.

Addressing the matter, the board said it consisted of only five members before appointing Mr Ang as the company’s non-independent non-executive director.

Mr Ang, who holds 23.7 per cent direct and deemed interest in Datapulse, had made a request for a board seat.

To ensure that the board comprises a majority of independent directors, Datapulse had to appoint an additional independent non-executive director following Mr Ang’s inclusion on the board.

Resulting from this, the board size of the company increased from five to seven.

Datapulse’s board has noted that Mr Ang has not explained how he and his proposed new board members would address the concerns he raised.

Separately, on June 16, Mr Ang requisitioned Catalist-listed ICP to convene an EGM to remove three board directors and appoint Mr Hor as a director.

Mr Ang had also alleged related-party transactions between ICP and Datapulse, noting that ICP executive director Marcus Aw Ming-Yao is the son of Datapulse chairman Mr Aw – a substantial shareholder of ICP.

Despite its views, Datapulse’s board said it will convene an EGM in due course to explain the company’s strategy and direction, and allow shareholders to vote on the requisitioned resolutions.

Shares of Datapulse Technology closed trading on the Singapore Exchange up 0.1 cent, or 1.1 per cent, at nine cents on Thursday.

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