38. SIGNIFICANT EVENTS DURING THE FINANCIAL PERIOD (CONTINUED) Significant events during and subsequent to the financial year are as follows:- (continued) (c) Material litigation between Dagang NeXchange Berhad, DNeX Semiconductor Sdn. Bhd., Mimastronics Technologies Company Limited and Tethystronics Technologies Company Limited: (continued) ii. Commencement of Originating Summons by TTCL against DNeX Semi and Silterra in relation to a shareholders’ agreement dated 8 July 2021 entered between TTCL and DNeX Semi The Company’s subsidiaries namely, DNeX Semi and Silterra (collectively referred to as “the Group” or “the Defendants”) were on 15 December 2022 served with an Originating Summons together with notice of Application (ex–parte) for injunctive relief against the Defendants. The cause papers were served at the registered office of the Defendants on 12 December 2022. As a result of inadvertent clerical error, the cause papers were not brought to the attention of the management of the Defendants. The notice of application sought among others, injunctive relief and remedies against the Defendants. The notice of application was heard before the High Court on 14 December 2022. As a result of explanation given by the Defendants’ counsel, the court granted an interim injunction pending hearing of the Plaintiff and Defendants on 22 February 2023. A Consent Order (“Consent Order”) was recorded on 9 January 2023 in the High Court of Kuala Lumpur in relation to the Originating Summons No. WA–24NCC(ARB)–55–12/2022 (“OS”) on mutual agreement between TTCL, DNeX Semi and Silterra. Among others, the Consent Order provides that:- 1) The Ad Interim Order dated 14 December 2022 (“Interim Injunction”) was discharged; 2) The Board of Silterra shall not deliberate on matters in respect of the proceeding of the OS and impending arbitrations; 3) The Board of Silterra is entitled to convene subsequent meetings in respect of other matters related to Silterra, and that Silterra shall remain a nominal party in the OS proceedings; 4) TTCL and DNeX Semi shall ensure that their respective nominee directors of Silterra abide by the terms of the Consent Order and that such directors shall continue to act in the best interest of Silterra; 5) The composition of the Board of Silterra shall remain as at the composition prior to 21 November 2022; and 6) The Consent Order shall be effective and enforceable until the disposal of the OS. The Consent Order shall be discharged upon the disposal of the OS. The Consent Order will not have any material financial impact other than legal cost to be incurred and no material operational impact is expected arising from the Consent Order. In contrary, the Consent Order will allow the Board of Silterra to operate their business as usual with a functional Board. Financial Statements DAGANG NeXCHANGE BERHAD 302 NOTES TO THE FINANCIAL STATEMENTS
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