KUALA LUMPUR (Dec 1): Shareholders of Ho Hup Construction Company Bhd (KL:HOHUP) have voted against the re-election of Datin Chan Bee Leng — the final remaining representative of the company’s founding family on the board — while also refusing to approve RM500,000 in directors’ fees at the group’s annual general meeting on Monday.
Chan, the wife of Datuk Low Tuck Choy and daughter-in-law of Ho Hup’s late founder, was ousted after 17 shareholders holding 96.1% of voting shares opposed her return to the board. Only 10 shareholders, representing 3.9%, supported her reappointment.
Her departure marks another significant shift in the long-standing boardroom tussle between the Low family and substantial shareholder Omesti Holdings Bhd (KL:OMESTI). Chan’s son, Low Kheng Lun, was removed as executive director during an extraordinary general meeting (EGM) on Nov 20, where Omesti successfully installed its nominees — Ong Koon Loong and Bernard Chen Tong Liang — to the board.
At the AGM, a separate resolution to approve directors’ fees for January–June 2025 and the financial year 2026 was also rejected. Twelve shareholders holding nearly 70% of voting rights opposed the payout, while 13 shareholders with a 30.08% share approved it.
Escalating corporate battle and financial strain
The intensifying dispute follows Omesti’s October 22 notice calling for the removal of Kheng Lun and Datuk Wong Kit-Leong. Around the same time, the Low family’s investment vehicle, Low Chee Group, ceased to be a substantial shareholder after its stake slipped below the threshold on Oct 16. A year earlier, it held 9.09%, making it the second-largest shareholder after Omesti.
Ho Hup, once a notable name in construction and property development, has struggled financially in recent years. The company slipped into Practice Note 17 (PN17) status in April after its subsidiary Bukit Jalil Development Sdn Bhd defaulted on RM112.69 million in loans — obligations for which Ho Hup is a guarantor.
For the first quarter ended Sept 30, 2025, Ho Hup recorded a reduced net loss of RM1.7 million, narrowing from RM18.7 million a year earlier, although revenue dropped sharply to RM2.2 million. For its extended 18-month financial period ending June 30, 2025, the group posted a cumulative net loss of RM473.25 million on RM57 million in revenue after changing its financial year end to June.
At the mid-day break on Monday, Ho Hup’s shares were unchanged at five sen, valuing the distressed construction and property group at RM26 million. The stock has declined 68% year to date.
