The Board of Directors of SNC wishes to announce that the Company had on the 18th of July 2017 received a Notice Pursuant To Section 465(1)(E) read together with Section 466(1)(A) of the Companies Act 2016 ("The Notice") dated 13th of July 2017 from a firm of solicitors acting on behalf of Loh Siow Chan @ Loo Su Cheong ("LSC"). In the said Notice of Demand, LSC has demanded for a payment of RM85,210.50 a sum derived from a formula employed by virtue of a resolution the particulars of which are stated below.

SNC has twenty one (21) days from receipt of this Notice of Demand to settle the Claim, failing which winding up proceedings will be taken against SNC. The Company is seeking legal advice and will take all appropriate course of actions to resist the Claim including defending the Claim made against SNC in court.

Details of circumstances leading to receipt of the Notice 

The Claim originated from a letter of undertaking dated 7-1-2004 and the Director's Circular Resolution that was passed on the 7-1-2004, in which it would seem that the previous Board of Directors may have agreed and undertook to settle the outstanding sum of RM4,652,951.22 to LSC using the following formula of 15% of the net profit after taxation of each financial year until the outstanding sum due and owing to LSC is fully settled. For the financial year ended 31st December 2016 which SNC had declared a net profit of RM568,070.00. Hence, SNC received the Notice Pursuant To Section 465(1)(E) Read Together With Section 466(1)(A) of the Companies Act 2016 from LSC.

SNC has taken a stand to dispute the said debt of RM4,652,951.22 and are awaiting the relevant authorities to conduct and complete their investigation.

Financial and operational impact of the Notice on the Group

The Notice is not expected to have any significant financial or operational impact on the SNC Group as the Group has adequate resources to meet this commitment without any difficulty.

Expected losses, if any, arising from the Notice of Demand

In the event that SNC is not successful in its defence against the Claim made by LSC, the expected losses to SNC will comprise satisfaction of the Claim plus legal costs and interest.

Steps taken and proposed to be taken by SNC in respect of the Notice

The Company have sought for legal advice from their lawyers to defend this notice and the lawyers have advised that there is a greater chance of success to defending the said demand.

Further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.  

This announcement is dated 27th July 2017.