ICP : 5I4 0% will hold an extraordinary general meeting (EGM) on Jul 26 to vote on the removal of three directors.

The meeting will be held at 3 pm at the Singapore Swimming Club, the board said on Tuesday (Jul 4). 

ICP’s counter fell as much as 8.3 per cent or S$0.001 to S$0.011 when the market opened on Tuesday following the announcement. This mostly erased the 9.1 per cent gain recorded on Monday, when ICP shares closed at S$0.012.

Shareholder Ang Kong Meng requisitioned the EGM to pass seven resolutions. He said in his requisition notice that he holds a direct interest of 10.99 per cent and indirect interest of 10.35 per cent in ICP.

The first, second and third resolutions are to remove three directors, including its chairman Tan Kok Hiang, with effect from the date of the EGM.

The fourth and fifth resolutions are to appoint two new directors, including Ang, with effect from the date of the EGM.

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Shareholders will also need to vote on the removal of any directors who were appointed between the date of the requisition letter and the EGM date.

The last resolution is for the company to cease any diversification or capital or fund-raising activities beyond its businesses from the date of the requisition letter.

In a letter to shareholders on Tuesday, ICP’s board said that it does not recommend that shareholders vote in favour of the proposed resolutions.

One point of contention is a proposed placement announced on Jun 8. The group was looking to raise S$4.9 million to expand via strategic partnership and for general working capital purposes.

Ang previously claimed that the equity issuance of up to 5.7 billion shares was “conducted with the intention to dilute shareholders’ interest”.

In response, the board said that it had considered various factors, including the certainty and speed of funding, before deciding to proceed with the placement. It added that it was in advanced talks for an investment opportunity which requires the funding to be in place.

Ang noted related-party transactions as another reason for his requisition notice.

ICP executive director Aw Ming-Yao Marcus is the son of Aw Cheok Huat, a substantial ICP shareholder who is also the chairman of Datapulse Technology.

Regarding the matter, the board said that the familial relationship and the companies’ related-party transactions “do not appear to be relevant nor a meritorious reason” to replace the directors.

Catalist-listed ICP is in the business of hotel management and franchising, hotel funds management, shipping investment and charter. Travelodge Hotels (Asia) is one of its main operating subsidiaries.

Separately, Ang holds 23.7 per cent direct and deemed interest in Datapulse and is a board director. On Jun 22, Datapulse said that it received a requisition notice from Ang, who is looking to remove five fellow board members and appoint two others to its board.