BURSA ANNOUNCEMENTS
Date : 30 March 2011
MATERIAL LITIGATION
| TALIWORKS CORPORATION BERHAD |
| Type | Announcement |
| Subject | MATERIAL LITIGATION |
| Description | TALIWORKS CORPORATION BERHAD (“Taliworks” or “the Company”) - Initiation of Civil Suit by Puresino (Guanghan) Water Co Ltd (“Puresino Guanghan”), a subsidiary of Taliworks |
INFORMATION ON THE CIVIL SUIT Plaintiff : Puresino Guanghan 1st Defendant : Puresino International Limited (“PIL”) 2nd Defendant : Beijing Boda Environmental Engineering Co Ltd (“BODA”) 3rd Defendant : Miao Dongyuan 4th Defendant : Wang Shaoyin 5th Defendant : Fu Shijun 6th Defendant : Li Lu [hereinafter collectively referred to as “the Defendants”] Puresino Guanghan was incorporated in the People’s Republic of China ("PRC") on 19th August 2003. PIL and BODA, the then shareholders of Puresino Guanghan had on 18th August 2006 entered into a Capital Increase Agreement in relation to the purchase of Puresino Guanghan (then known as Guanghan Renfu Waste Water Treatment Co Ltd)’s shares (“Agreement”). As per the said Agreement, PIL and BODA are to increase the paid up capital of Puresino Guanghan from RMB10.5 million to RMB20.0 million as follows:- (i) RMB6.65 million consisting of RMB2.45 million in cash and RMB4.2 million worth of equipment by PIL; and (ii) RMB2.85 million consisting of RMB1.05 million in cash and RMB1.8 million worth of equipment by BODA. On 29th September 2006, PIL and BODA had injected RMB6 million worth of equipment into Puresino Guanghan as the agreed paid up capital. However, it was later discovered by Puresino Guanghan that these equipment were actually similar in specification and quantity with those supplied to Puresino Guanghan by its contractor, Watson Environmental Engineering Co., Ltd, who has recently sued Puresino Guanghan for payment. The said contractor has listed these equipment as evidence in its suit against Puresino Guanghan. The retrial of this matter in the Sichuan Province Deyang Civil Intermediate People's Court as ordered by the Sichuan High Court has been suspended pending result of arbitration proceedings. Arising from the above, Puresino Guanghan has decided to initiate legal proceedings against PIL, BODA, Puresino Guanghan’s directors, management and officers at that material time for the losses and damages incurred in relation to the RMB6 million increase in the paid up capital. The Board of Directors of Taliworks wishes to announce that its subsidiary company, Puresino Guanghan had on 30th March 2011 commenced a civil suit against the Defendants at the Deyang City Intermediate People Court to seek amongst others, the following claims against the Defendants:- (i) That the 1st Defendant, PIL fulfils its obligation to pay up RMB 4.2 million for the increase in paid up capital of Puresino Guanghan and to compensate the loss suffered by the Plaintiff amounting to RMB1.22 million based on the interest rate calculation of 6.48% as at 29th August 2006 on the RMB4.2 million up to 28th March 2011. The total aggregate amount claimed by the Plaintiff against PIL is RMB5.42 million comprising the payment of RMB4.2 million and RMB1.22 million for the paid up capital and the loss suffered by the Plaintiff respectively. (ii) That the 2nd Defendant, BODA fulfils its obligation to pay up RMB1.8 million for the increase in paid up capital of Puresino Guanghan and to compensate the loss suffered by the Plaintiff amounting to RMB0.52 million based on the interest rate calculation of 6.48% as at 29th August 2006 on the RMB1.8 million up to 28th March 2011. The total aggregate amount claimed by the Plaintiff against BODA is RMB2.32 million comprising the payment of RMB1.8 million and RMB0.52 million for the paid up capital and the loss suffered by the Plaintiff respectively. (iii) That the 3rd, 4th, 5th and 6th Defendants namely Miao Dongyuan, Wang Shaoyin, Fu Shijun and Li Lu to be jointly held liable for the falsification of the paid up capital and other losses in relation to items (i) and (ii) above. (iv) That the cost of legal proceedings shall be borne by all the Defendants. The Company will make further announcements on material developments on this matter from time to time. The civil suit by Puresino Guanghan against the Defendants will not have any material financial and operational impact on Taliworks. None of the Directors or substantial shareholders of Taliworks or persons connected to them has any interest, direct or indirect, in the said suit. This announcement is dated 30th March 2011. | |
Announcement Info
| Company Name | TALIWORKS CORPORATION BERHAD |
| Stock Name | TALIWRK |
| Date Announced | 30 Mar 2011 |
| Category | General Announcement |
| Reference No | CC-110330-65812 |