28) CORPORATE PROPOSALS
(Cont’d)
On 10th April 2015, the Company announced that DPO Plantations Sdn Bhd, a wholly-owned
subsidiary of the Company has entered into a Memorandum of Agreement with Batu Emas
Resources Sdn Bhd in relation to the provision of the basis and framework for a Joint Venture
Agreement to be entered into by the Parties for the establishment and regulation of a Joint
Venture Company to be formed subsequently under the CompaniesAct, 1965 which shall comply
with the relevant provisions of the Land Code for the purpose of development of the parcel of
land situated at Loba Bunut Hulu, Bintangor, Sarawak containing an area approximately 4,361
hectares into an oil palm plantation.
29) MATERIAL LITIGATION
The Company has been served with a Writ and a Statement of Claim dated 5th September 2014
from a former key management of the Company (“Plaintiff”) on 9th September 2014.
The Plaintiff’s primary claim against the Company is that there are irregularities in the Statutoty
Declarations in respect of the Financial Statements of the Company for the financial years
ended 31st December 2012 and 31st December 2013 on ground that the signatures in the said
Financial Statements have been forged.
The Company vehemently denies the Plaintiff’s allegations and claims which are totally baseless
and motivated by bad faith. The Company has since instructed its lawyers to file the necessary
legal defence to the claim and to further consider taking out a defamation suit against the Plaintiff.
On 18th November 2014, the abovementioned suit was ordered to be consolidated with another
suit. In respect of the other suit, the Plaintiff therein has filed an interlocutory application for
discovery and appointment of a court expert. As at the date of this report, the main suit has been
fixed for trial in June 2015.
Asia Media Group Berhad Annual Report 2014
118
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
