MIC's troubled investment arm Maika Holdings has been slapped with an injunction today by one of its major shareholder to stop the implementation of resolutions passed at the annual general meeting on Aug 30.

The main resolution affected by this injunction is the sale of Maika's only cash cow - insurance company Oriental Capital Assurance Bhd (OCAB).

The injunction was obtained by Koperasi Nesa Pelbagai Bhd, a company which has 625,000 shares in Maika and led by former MIC deputy president S Subramaniam.

The order has been served on Maika.

Maika had sought the sale of this subsidiary to solve its financial woes . It had ostensibly obtained the required approval from its shareholders to proceed with the RM129.8 million sale.

However, Nesa believed that the approval was not properly gained due to the manner the annual meeting was conducted.

When contacted, Nesa's secretary R Rajannan said that the cooperative was unhappy with the fracas-filled meeting which resulted in most shareholders not voting to decide on the proposed sale.

Many shareholders also felt that the sale of OCAB would only mean the sounding of a death bell for the investment company.

The injunction also stopped Maika from disposing, dissipating, selling or transferring the entire assets of Maika as proposed and passed at the AGM.

Maika will be able to set aside or dismiss the injunction order when the matter comes for hearing before Kuala Lumpur High Court judge Kang Hwee Wee on Oct 8.

The injunction is part of a suit filed by Nesa against Maika last Friday.

In the suit, Nesa wants the court to declare the AGM and the resolutions passed in it as null and void and be set aside.

Fracas-filled AGM

Nesa also wants the court to order that Maika's chairperson Abdul Rashid Abdul Manaff had failed in his duties and responsibilities in conducting the meeting.

The cooperative wants a fresh general meeting convened within 45 days.

"We also want an order that Maika appoints an independent valuer to prepare an independent valuation report of the true and current values of the insurance company," Rajannan told Malaysiakini .

Maika, founded by MIC president S Samy Vellu, has been in financial turmoil for several years now following the failure of its long list of business ventures and investments. It is headed by Samy Vellu's son, Vell Paari.

The investment company was established in 1982, purportedly to enable Indian Malaysians to have a share in the country's economic growth. It raised RM106 million from 66,000 investors.

The AGM held on Aug 30 turned out to be a robust affair with accusations and allegations of thuggery claimed by both Subramaniam and his supporters as well as by those on the other side - people aligned to Samy Vellu.

Subramaniam, who lost the leadership tussle with Samy Vellu, was continuously harassed by the president's men at the AGM whenever questions were asked pertaining to Maika's finances.

In one altercation, Subramaniam was roughly manhandled by several men at the meeting, resulting in a walkout by Subramaniam and his supporters. Many other shareholders also left the meeting soon after.

A voting process on the proposed sale of the insurance company took place after the walkout, which Maika claimed to have received an overwhelming support from the shareholders.

Nesa, in its suit, now claims that the meeting was never allowed to take place in an orderly fashion and wants the court to intervene to safeguard the interest of all shareholders.