KUALA LUMPUR (July 7): OneTech Solutions Holdings Bhd's (KL:1TECH) former managing director Lau King Yew on Monday served a winding-up petition on the LEAP Market-listed company in what appears to be an escalation of a legal dispute with the company’s current leadership.

The petition named OneTech, its wholly-owned subsidiary One ERP Solutions Sdn Bhd, and current managing director Tan Yuh Pei and executive director Koh Kean Mum as respondents.

Lau alleged that Tan and Koh, in their capacity as directors of One ERP, acted in their own interests rather than in the interests of shareholders as a whole, and treated him unfairly and inequitably.

Lau also cited an irreparable breakdown of trust and confidence between himself and Tan, with whom he had worked for over 10 years.

He is seeking a court order for OneTech to be wound up on fair and equitable grounds under the Companies Act 2016. Lau also seeks for liquidator fees and the costs of the petition to be borne by the company or jointly by the respondents.

The High Court has fixed July 15 for case management via e-review, and July 31 for hearing via Zoom.

"The board is in the process of seeking legal advice and further announcement on the development of the above matter will be made in due course," OneTech said in the bourse filing on Monday.

This latest action follows a suit Lau filed in June, in which he accused Tan and Koh of managing the company in an oppressive and unfair manner. In that suit, Lau sought a court declaration of mismanagement, damages and an order compelling the duo to jointly buy out his 34.63 million shares at 20 sen per share, or RM6.93 million in total.

As an alternative remedy in the June suit, Lau also requested that OneTech be wound up.

OneTech said that aside from potential legal and court costs, the litigation is not expected to have any material financial or operational impact at this stage.

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