ICP to vote on directors’ removal at EGM on July 26
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ICP, which has Travelodge Hotels (Asia) as one of its main operating subsidiaries, will also vote on the appointment of two new directors.
PHOTO: TRAVELODGE
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Daphne Yow
SINGAPORE – Catalist-listed ICP will hold an extraordinary general meeting (EGM) on July 26 to vote on the removal of three directors, its board said on Tuesday.
The meeting will be held at 3pm at the Singapore Swimming Club.
Shareholder Ang Kong Meng requisitioned the EGM to pass seven resolutions.
The first, second and third resolutions are to remove three directors, including its chairman Tan Kok Hiang, with effect from the date of the EGM.
The fourth and fifth resolutions are to appoint two new directors, including Mr Ang, with effect from the date of the EGM.
Shareholders will also need to vote on the removal of any directors who have been appointed between the date of the requisition letter and the EGM date.
The last resolution is for the company to cease any diversification or capital or fund-raising activities beyond its businesses from the date of the requisition letter.
In a letter to shareholders on Tuesday, ICP’s board said it does not recommend that shareholders vote in favour of the proposed resolutions.
One point of contention is a proposed placement announced on June 8. The group was looking to raise $4.9 million to expand via strategic partnership and for general working capital purposes.
Mr Ang previously claimed that the equity issuance of up to 5.7 billion shares was “conducted with the intention to dilute shareholders’ interest”.
In response, the board said it had carefully considered various factors, including the certainty and speed of funding, before deciding to proceed with the placement. It added it was in advanced talks for an investment opportunity which requires the funding to be in place.
Mr Ang noted related-party transactions as another reason for his requisition notice. ICP executive director Aw Ming-Yao Marcus is the son of Aw Cheok Huat, a substantial ICP shareholder who is also the chairman of Datapulse Technology.
Regarding the matter, the board said the familial relationship and the companies’ related-party transactions “do not appear to be relevant nor a meritorious reason” to replace the directors.
Mr Ang said in his requisition notice that he holds a direct interest of 10.99 per cent and indirect interest of 10.35 per cent in ICP.
Separately, he holds 23.7 per cent direct and deemed interest in Datapulse and is a board director.
On June 22, Datapulse said it received a requisition notice from Mr Ang, who is looking to remove five fellow board members and appoint two others to its board.
ICP shares were trading down 0.1 cent, or 8.3 per cent, at 1.1 cents as at 10.52am on Tuesday, after the announcement. THE BUSINESS TIMES
