PETALING JAYA (July 2): PRG Holdings Bhd has received a statutory demand amounting to RM21.22 million from its substantial shareholder Ng Yan Cheng, relating to advances previously provided to the company as working capital.

The notice was issued under Section 466(1)(a) of the Companies Act 2016 and served through Messrs Yap Siew Yee & Co on June 30, 2026.

According to the filing, Ng, who holds a 16.39% stake in PRG Holdings Bhd, is seeking repayment of RM21,219,000 within 21 days from the date of the statutory demand.

If the company fails to settle, secure or reach an agreement on the amount within the stipulated period, the shareholder may initiate winding-up proceedings against the company under the same legal provision.

PRG stated that the amount claimed relates to shareholder advances that were previously provided as working capital and have already been recognised in the company’s financial statements under amounts owing to shareholders.

The group added that the statutory demand is not expected to disrupt its day-to-day operations, as the liabilities have already been recorded in its accounts. However, it may incur additional legal and professional costs in addressing the matter.

The company is currently seeking legal advice and is in discussions with the shareholder in an effort to resolve the issue amicably. Further updates will be announced as and when there are material developments.

Key Takeaways

The case highlights how shareholder funding arrangements, often used to support working capital needs, can later lead to legal and financial disputes if repayment terms become contested. While PRG Holdings has already recorded the liability in its accounts, the statutory demand introduces potential legal risk, including the possibility of winding-up proceedings if unresolved within the legal timeframe.