IREKA 0.335 (%)

MATERIAL LITIGATION MATERIAL LITIGATION PURSUANT TO PARAGRAPH 9.03 OFBURSA MALAYSIA SECURITIES BERHAD MAIN MARKET LISTING REQUIREMENTS INRESPECT OF NOTICE OF APPLICATION RECEIVED FROM 58 FORMER EMPLOYEES OFIREKA ENGINEERING & CONSTRUCTION SDN BHD (UNDER LIQUIDATION)(IECSB), ASUBSIDIARY OF IREKA CORPORATION BERHAD

IREKA CORPORATION BERHAD
Type Announcement
Subject MATERIAL LITIGATION
Description MATERIAL LITIGATION PURSUANT TO PARAGRAPH 9.03 OF BURSA MALAYSIA SECURITIES BERHAD MAIN MARKET LISTING REQUIREMENTS IN RESPECT OF NOTICE OF APPLICATION RECEIVED FROM 58 FORMER EMPLOYEES OF IREKA ENGINEERING & CONSTRUCTION SDN BHD
(UNDER LIQUIDATION)(IECSB), A SUBSIDIARY OF IREKA CORPORATION BERHAD
The Board of Directors of Ireka Corporation Berhad (“ICB” or “the Company”) wishes to announce that the Company had on 28 December 2023, received a letter dated 28 December 2023 from Messrs. Lily Chua & Associates, the solicitors representing fifty eight (58) former employees (“former employees”) of Ireka Engineering & Construction Sdn. Bhd. (Under
Liquidation) (“IECSB”) accompanied by a Notice of Application and Affidavit in Support, dated 12 December 2023 and 7 November 2023, respectively.
Both legal documents were filed to the Kuala Lumpur Industrial Court (“Industrial Court”) on an application under Section 29(a) of the Industrial Relations Act 1967 and Paragraph 12 and 13 of the Industrial Court Rules 1967 and /or Practice Note No. 1 of 2011 and /or the inherent jurisdiction of the Industrial Court for an Order on the following terms:

  1. THAT IECSB be substituted with ICB,
  2. THAT cost of and incidental to this application be provided for,
  3. THAT parties be at liberty to apply, and
  4. Such further and /or other orders or relief as the Industrial Court deems fit and proper.
    INFORMATION ON IECSB
    IECSB, a former subsidiary of the Company, cannot by reasons of its liabilities continue its business. IECSB had on 27 May 2023, passed and lodged the Notice of Resolution to wind-up voluntarily
    pursuant to Section 439(2)(a), 440(1) of the Companies Act 2016 and to appoint Haji Wan Idris Bin Wan Ibrahim (NRIC : 681003-08-5107) as its Liquidator.
    BACKGROUND
    All the claimants were the former employees of IECSB.
    IECSB had made an application to Kuala Lumpur High Court to appoint an Interim Judicial Manager (“IJM”) on 29 July 2022. Since then, all claims against IECSB were addressed IJM. Among the
    actions taken by the IJM was to discontinue the employment of all employees of IECSB on 30 November 2022.
    The IJM filed an application to the Kuala Lumpur High Court to discharge himself as the IJM of IECSB on 9 January 2023. The IJM was of the view that maintaining IECSB as a going concern was no
    longer an achievable exercise.
    The former employees are applying among others, that IECSB be substituted with ICB for the following reasons:
  5. IECSB is a subsidiary of the Company,
  6. IECSB takes directions and/or instructions from ICB in order to benefit its ultimate shareholders in ICB,
  7. Whatever actions IECSB takes are with a view to benefit ICB and/or the shareholders of ICB. In this regard, ICB is the employer, and
  8. ICB was the directing mind of IECSB in order to benefit the Company and/or the shareholders of ICB.
    The Company is in the midst of appointing a solicitor to act on behalf of the Company to defend the case.
    The Company will make the appropriate announcements to Bursa Malaysia as and when there are material developments in relation thereof.

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