TRG Pakistan receives court order in shareholder dispute

February 17, 2025 (MLN): TRG Pakistan Limited (PSX: TRG) has received a certified order regarding a legal suit filed by a shareholder before the Civil Judge in Islamabad.

The suit seeks an injunction and restraining order to prevent the Company from conducting its Board of Directors elections.

The Civil Judge 1st Class was pleased to pass an ad-interim order, dated February 11, 2025, to restrain the Company in respect of its board elections until the next date of hearing.

This suit is in addition to previous suits filed by two separate shareholders of the Company before a Senior Civil Judge in Lahore seeking to stay the election, the notification issued to the local bourse.

The Company's former CEO Mr. Zia Chishti joined these proceedings by filing an intervenor application and filed a writ petition and received a stay before the Lahore High Court challenging the dismissal of his appeal against the Senior Civil Judge's ad-interim orders to stay the elections.

The Company's largest shareholder, Greentree Holdings Limited, has also filed intervenor applications in both the Civil Court and the Lahore High Court proceedings.

Both these proceedings remain pending.

In addition, Greentree Holdings Limited also filed a suit before the Sindh High Court in January 2025 to delay the Company's elections, which proceedings are pending as well.

In another material legal development, the Honourable High Court of Sindh passed an ad-interim order dated February 12, 2025, in favour of the Company and its associate The Resource Group International Limited ("TRGI").

The order restrains the Company's former CEO Mr. Zia Chishti and his spouse Ms. Sarah Pobereskin from transferring, selling, or creating any third-party interest in the shares of the Company owned by them.

This ad-interim order is part of a JCM filed by the Company and TRGI.

It is related to a U.S. arbitration award issued in favour of TRGI on January 27, 2025, which ruled, inter alia, that shares pledged by Mr. Chishti, primarily to JS Bank as security for a loan, were in breach of Mr. Chishti's contractual obligations.

Finally, on January 28, 2025, Mr. Chishti filed a motion for preliminary injunction in a U.S arbitration involving the Company, seeking to stop Greentree Holdings Limited from proceeding with its tender offer, while at the same time accelerating the board elections of the Company.

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