Civil Appeal No. N-02(IM)(NCVC)-836-05/2015
Civil Appeal No. N-02(IM)(NCVC)-1143-07/2015
Civil Appeal No. N-02(NCVC)(A)-1425-09/2015
between Dato' Loo Swee Chew, Liang Chong Wai and Sung Lee Timber Trading Sdn Bhd
and
Yong Kian Seng @ Yoong Tein Seng, Yoong Hau Chun, Tenson Holdings Sdn Bhd, Firama Holdings Sdn Bhd and HeveaWood Industries Sdn Bhd
and
Seremban High Court Originating Summon No. 24NCVC-197-09/2014
A friend of mine who works for Heveapac Sdn. Bhd., one of the main subsidiaries of Hevea Board Berhad, sent me the above civil suit cases which are still ongoing. He knows that I bought a lot of Hevea shares since early 2014 and was concerned for my investment as a friend because of these suits.
I must admit that I was taken aback when I first saw these. I thought Hevea was a well governed company with its management and the major shareholder cum the ultimate shareholding company Heveawood Industries Sdn. Bhd. (which owned about 28% shareholding in Hevea) enjoying a courteous and harmanious relationship among them all this while. But thing does not seem what it perceived to be. In fact, the internal fight has already started way back in mid 2014 itself, after the shares price of Hevea was slowly climbing from $1.05 to $1.50 (pre-Split).
As an outsider, I am not privy to what is the real crux of the disputes such that the shareholders of Heveawood Industries must bring this matter up to the court of laws to sort it out. I am dismayed, sad and disappointed that Hevea as a listed entity had chosen to conceal and hide these law suits away from the knowledge of all of us, both as an individual shareholder and as a general investing public.
The Bursa Listing Requirement would have dictates that on any matter, trivial or major, that may cause the shares price of a listed entity to have moved either way, the same must be disseminated to the investing public at once. And I believe these suits wherein the major shareholders of the ultimate shareholding company are involved, warrant Hevea to have make the announcement immediately then.
But Hevea chose not to.
In fact, the management and the Board of Directors of Heveawood (consists of Yoong Hau Chun and Dato' Yoong Tein Seng) chose to take the matter into their own hands. And sacked Dato' Loo Swee Chew who owned a 21.66% stake in Heveawood Industries in it's last AGM in or around October 2015. The dispute has gone so ugly that the said AGM was forced to convene twice!
Words around the privileged inner corporate circle disclosed that in one occassion, drinking glasses were thrown in a Heveawood Industries shareholders meeting at their Company Secretary's office at Bangsar South and thugs behaving violent manner rampantly displayed. Yoong Hau Chun, the MD of Hevea was even threatened at a shattered glass' point to tone down his word by Dato' Loo Swee Cheong. Needless to say, the meeting ended abruptly unresolved and unpleasant for neither rivalling shareholders.
There was instance where underworld henchmen were solicited in at least one occassion when Dato' Loo Swee Cheong went for a Committees' Meeting of Heveaboard at its plant in Gemas, Negeri Sembilan about 2 months ago.
Mahatma Gandhi once said : "The earth provides enough to satisfy every man's need, but not every man's greed". And the root to this debacle, and potentially Hevea's inferno if not restrained or allowed to go unabated, the way I see it, is none other than the greed of money, arising from the ever escalating Hevea shares price. Thanks in part to my good friends Wikileaks and 1Mtalkingkangkung.
I do not know I should be happy or disheartened with my investment in Hevea. I was once thrilled to have found an unpolished gem, as I have wrote in my 2014 blog, in the name of Heveaboard Berhad. But now although I should be delighted with its shares price performance, I do not embrace or feel the supposedly satisfaction cum feeling-great effect of this new wealth that I have found in Hevea.
Right now, I would conclude that Hevea is just another wealth creating stock for me. It has lost miserably my respect, the righteousness and courage to take on something bigger in its corporate life. And become a Good Company along the way.
I think I would do much better by taking the money off the Hevea's table now, realising the investment gains and move on. After all, Hevea's shares price is at its peak now since it was listed in 2008.
For now, I may have to look out for another company that meet my definition of a real Good Company in terms of good fundamentals and good governance, that I will treasure for life.
I have made the call to buy Hevea in 2014, it is only righteous that I must similarly make the call to exit when I myself is doing it now.
HEVEA (5095) - HEVEA, Internal Cracks Emerging 亿维雅，股东内鬨
http://klse.i3investor.com/blogs/heveatimetoalight/89220.jsp
HEVEA, HEVEA (5095), 5095, EN5095, KLSE:HEVEA, Investing,robertl