54 MATERIAL LITIGATION (CONTINUED) (ii) On 12 February 2019, all Defendants to the suit filed by the Company on 23 November 2018 against its former members of the Board of Directors and former employees on the acquisition of APL (“Company suit”) had filed their respective Defences except for one, who was directed by the High Court to file his Defence on or before 4 March 2019. On 11 February 2019, certain Defendants to the Company suit had filed a counterclaim (“the Counterclaim”) against the Company and the previous members of the Board of Directors of the Company (“Counterclaim Defendants”). The Counterclaim seeks reliefs, jointly and severally, against the Company and the Counterclaim Defendants for declaration that the Company and the Counterclaim Defendants were liable for the loss of RM514 million (in the Company’s suit) and for any damages, general damages and interest at 5% per annum to be indemnified by the Company and Counterclaim Defendants. On 8 November 2019, the Counterclaim Defendants filed an application to strike out the Counterclaim. The High Court after hearing both parties, had struck out the Counterclaim and dismissed the 10th to 14th Defendants’ claim with costs. The High Court also directed the Defendants to file and serve their Amended Defence. On 13 January 2020, the Solicitors of 8th Defendant updated the Court that they had filed an application to amend their Defence. On 6 September 2021, the Court of Appeal heard and allowed the 10th to 14th Defendants’ appeal and reversed the decision of the High Court. The Company filed an application for leave to appeal to the Federal Court (‘Leave Application”). The Court had on 8 September 2022 informed that the case would be transferred to NCvC 12 (new civil court) and no official letter of the direction from the new judge. On 5 October 2022, the Federal Court did not allow the Plaintiff’s application for Leave to Appeal and therefore, the Main Action and the Counterclaim will proceed to trial in the High Court. The Court has fixed new trial dates on 17 to 19 April 2023 and fixed for a case management and hearing for 10th to 14th Defendants amendment application on the counter claim on 22 February 2023. On 22 February 2023, the Judge indicated that this case would be more suitable to be heard in a Commercial Court (the case was filed in a Civil Court). Hence, the case management and hearing of 10th to 14th Defendants amendment application on the counter claim could not proceed. Additionally, the 1st Defendant had filed an application to amend his defence. The case had been transferred to the Commercial Court. On 31 March 2023, the Court has fixed the 1st Defendant’s Amendment Application and 10th to 14th Defendants Amendment Application for Hearing on 27 November 2023. On 27 November 2023, the Court had allowed both Applications with costs of RM5,000 to be borne by the 1st Defendant and 10th to 14th Defendants. On 2 July 2024, the outcome of the Hearing were as follows: (i) The Court allowed the Plaintiff’s application to amend the Reply to the 8th Defendant Defence with costs of RM5,000; (ii) The Court allowed 8th Defendant’s application to file a rejoinder and for the Plaintiff to file a surrejoinder; (iii) The Court recorded that 2nd to 5th Defendants consented to the Plaintiff’s amendment application subject to the filing of rejoinder and then for the Plaintiff to file a surrejoinder. The Court had fixed trial dates on 2 to 4, 17 to 19 and 22 to 26 September 2025. On 9 December 2024, the Court was informed that the Solicitors for Fifth Defendant have filed and served the application for discharge on their client. On 9 January 2025, the Court had allowed both First Defendant and Fifth Defendant applications to discharge themselves as solicitors. On 25 February 2025, the Court directed parties to exchange witness statements by 30 June 2025. The Court then fixed the next Case Management on 21 July 2025 for further directions on the case. No provision has been recognised as the filing of the pleadings has yet to be completed. Notes to the Financial Statements For the financial year ended 31 December 2024 181
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