Acra hauls USP Group to court for not holding AGM

THE Accounting and Corporate Regulatory Authority (Acra) is taking action against USP Group for failing to hold its annual general meeting (AGM) within four months after the end of its financial year.

In a bourse filing on Tuesday (May 9), USP Group said it received a letter from Acra on Apr 28 informing them of the charge against the company. A representative of USP Group will be required to appear at the State Courts on May 24 when the case will be mentioned.

USP Group said it is being charged under Section 175(4)(a) of the Companies Act for defaulting in holding its AGM within four months after the end of its financial year on Mar 31, 2022. Under the section, the company and every officer of the company who is in default shall be guilty of an offence and liable on conviction to a fine not exceeding S$5,000 and a default penalty.

The company said it is in the process of seeking legal advice and will provide shareholders with updates following the hearing.

Since October last year, USP Group has been battling with a group of shareholders who have been attempting to requisition an extraordinary general meeting (EGM) to remove the existing board of directors and appoint a new board.

The High Court ruled last month that the EGM notice was invalid as the requsitionists did not meet the definition of “members” under the Companies Act. Judicial Commissioner Goh Yihan said in a written judgement he was compelled by the law to rule in this manner, but added that it was unacceptable that USP Group was trying to disrupt the democratic processes of the company.

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USP Group shares closed unchanged at S$0.133 on Tuesday.