Galasys lands in legal labyrinth with ex-directors

AIM-listed Galasys, a provider of ticketing technology to theme parks in Asia, has been taken to court by two former directors who object to having been removed from the board last month.

The company, which has its headquarters in Malaysia, its registered office in Jersey and UK office in Chertsey, Surrey, received a court order from the High Court in Kuala Lumpur on behalf of former finance director Hee Chee Keong and another ex-director, Chin Chee Siong.

The pair, whose departure was announced on 22 October with no explanation, contend that they "should remain as directors of the company", according to the order, and have called for their reinstatement to the Galasys board until a hearing proposed for 17 November.

However, while the company is governed by Jersey law, the employment contracts for both plaintiffs are governed by English laws, so management said it was investigating "the validity of the court order... as a matter of urgency".

Galasys, which floated at 22.5p in May last year with a £3.1m fundraising, admitted that the court order has "precipitated a disagreement" between the directors as to the composition of, and roles within, the board and after received conflicting legal advice, an independent firm of solicitors has been appointed to help resolve the situation.

Shares in Galasys were down by a third to 17.5p by 1310 GMT on Wednesday, before recovering slightly as the afternoon wore on.