SINGAPORE (Mar 26): Datapulse Technology is asking shareholders to vote on 10 resolutions at an extraordinary general meeting (EGM) on Apr 20.

Ng Bie Tjin @ Djuniarti Intan, the daughter of Datapulse co-founder, Ng Khim Guan – had requisitioned the EGM to replace four members in the current board.

The first four resolutions will vote for the removal of newly-appointed CEO Wilson Teng Wai Leung and independent directors Low Beng Tin, Thomas Ng Der Sian and Rainer Teo Jia Kai.

The current directors were appointed in December 2017, following a change in control of Datapulse in November.

This came after Ng Siew Hong, an individual who is not a member of the board, had acquired a 29% stake in Datapulse from parties including another co-founder, Ng Cheow Chye, who was also a former executive director.

After their appointment, the current directors had approved the $3.4 million acquisition of Wayco Manufacturing, which manufactures hair care, personal care and other household chemical products in Johor.

The next four resolutions will vote for the appointment of Ng as non-independent director, along with Ng Boon Yew, Loo Cheng Guan, and Koh Wee Seng as independent directors.

The ninth resolution at the EGM will seek shareholder approval for the diversification, while the final resolution is over a proposal to pay a special dividend of 1.0 cent per share following the completion of the sale of the Tai Seng property, which saw a gain on disposal of $44.6 million.

See: Datapulse returns to profitability in 2Q on gain from sale of Tai Seng property

In the Monday night filng, Datapulse says the acquisition is part of its business strategy to diversify into consumer business and investments, away from its loss-making media storage business.

“Datapulse’s financial performance has deteriorated for several years. The media storage business is not sustainable,” says Teng.

At the same time, Teng says the previous board had proposed the sale of the Tai Seng industrial building, which was used for the media storage business.

“Since November 2017, the former management had already scaled down operations of the media storage business, begun retrenching staff and disposed equipment,” Teng adds.

“With shareholder support to reject the removal of current directors, the board will evaluate strategic options to grow the Wayco business, taking into account a recent strategic review by Ernst & Young,” says Teng.

In a rare move, Singapore Exchange (SGX) last month had ordered Datapulse to appoint independent advisors to conduct a review of its internal controls and corporate governance practices.

Among other things, SGX called for the independent reviewer to determine the facts and circumstances surrounding the new board’s acquisition, as well as review the adequacy of the company’s internal policies and procedures relating to the evaluation and approval of mergers and acquisitions and conflicts of interest.

The reviewer was also required to examine Datapulse’s processes relating to board appointment and nomination by shareholders, as well as recommend improvements to internal controls and corporate governance practices.

See: SGX directs Datapulse to review corporate governance practices

“We trust shareholders will support our focus on corporate recovery while maintaining the highest levels of corporate governance,” Datapulse’s board says in a joint statement on Monday.

Shares of Datapulse were trading half a cent lower at 36.5 cents on Monday, before the company called for a trading halt at noon ahead of this announcement.