KUALA LUMPUR: HHRG Bhd, a leading Malaysian company specialising in biomass materials manufacturing and furniture production, successfully opposed an application for an interlocutory injunction today to restrain the company from asserting control of its subsidiary, MG Furniture Sdn Bhd (MGF).
In a statement, the company said with the Court’s decision, HHRG is now well-positioned to bring stability and implement much-needed governance reforms at MGF.
On July 26, 2024, HHRG was temporarily excluded from control over MGF pursuant to an ex parte order obtained by a minority founding shareholder.
The ex parte order was set aside yesterday following the High Court’s findings that, among other things, the ex parte application contained material non-disclosures.
The group’s immediate focus is on rebuilding MGF’s financial health and strengthening its corporate governance, in line with its broader commitment to operational excellence and delivering the set bottom lines.
HHRG, through its solicitors, has already contacted the plaintiffs for a meeting to appraise MGF’s business, financials, and operations since July 26, 2024.
“This decision represents a corporate turning point for MGF,” said HHRG CEO Fong Chee Khuen.
“We are now able to fulfil our responsibilities as the majority shareholder. We prioritise driving sustainable growth, restoring profitability, and ensuring operational transparency at MGF,“ he said.
The decision comes after MGF recorded significant profit declines during the profit guarantee period, which were attributed to operational inefficiencies and a lack of strategic oversight.
HHRG’s immediate priorities include implementing robust governance measures, addressing operational bottlenecks, and realigning MGF’s trajectory to meet the group’s overall aspirations.
“This was not an easy journey, but it underscores HHRG’s dedication to safeguarding shareholders value,“ Fong added.
“We are optimistic about MGF’s future under HHRG’s stewardship and are confident in our ability to turn challenges into opportunities,“ he said.
