Asia Media Annual Report 2018

126 | P a g e Shah Alam High Court Suit No. B-02(NCVC)(W)-1696-08/2019: Plisch Broadcast Asia Pacific Pte. Ltd. (“Plaintiff”) v Asia Media Sdn. Bhd. (“Defendant”). Defendant was dissatisfied with the Judgment on 7 August 2019 and have filed an Notice of Appeal at the Court of Appeal on 5 September 2019 against the entire Judgment ruled that the Plaintiff should return/repay the Defendant a total of €26,017.33/- only. The Court of Appeal has fixed the above matter for case management on 29 October 2019 pending preparing the Record of Appeal. The lawyers have liaised with the Secretary of the High Court Judge to obtain a copy of the Ground of Judgment in respect of the High Court Judge decision on 7 August 2019. The Group has provided provision for litigation claims and 5% interest on the sum of €166,402/-, approximately to RM786,732/-. 29. SIGNIFICANT EVENTS (a) Practice Note 17 ("PN17") Status On 24 July 2019, the Company announced that the Company has triggered the prescribed criteria pursuant Paragraph 8.03A(2)(a)(i) & (ii) of Chapter 8 and Paragraph 4.0 of Practice Note 17 ("PN17") under the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ) as a result of which prescribed under (aa). The Company has lost its contract with the bas operators in both Klang Valley and Johor (the “Relevant Contracts”), which result in the lost of its major business as the Company unable to continue to operate the its transit TV network and advertising business. On 25 July 2019, the current Board of Directors conduct an emergency Board Meeting to consider the effect, impact and veracity of the PN 17 Announcement. The current Board of Directors made arrangements to visit the office of the Company at No. 35, 1st Floor, Jalan Bandar 16, Pusat Bandar Puchong, 47100 Puchong, Selangor Darul Ehsan. However, the Directors were denied access by a former Executive Director. As a result, the Board is unable to determine the status of the Relevant Contracts, or the circumstances surrounding how the Company “lost” the Relevant Contracts, or the veracity of the status of the Company as an affected listed issuer in the manner described in the PN 17 Announcement. The Board is taking legal advice, as well as lodging a police report, and are persisting to get access to the Relevant Contracts and other documents, as well as obtain relevant information. On 5 August 2019, the Company clarified that the first announcement on PN17 was made after the majority 4 out of 7 Directors signed on the Directors' Circular Resolutions (“DCR”) to approve the release of the said first announcement. However, on 2 August 2019, the Company has via the company secretary received a copy of the police report lodged by one of the 4 Directors, namely Mr Paul Jong Jun Hian. In the report, Mr. Paul Jong Jun Hian alleged that his signature was forged on the DCR. The management is still trying to gather more information before further announcement on the status of PN17 will be made.