KUALA LUMPUR (July 22): Loss-making property firm Tanco Holdings Bhd has proposed a retirement gratuity of RM450,000 to Datuk Tan Lee Sing, who will be retiring as executive director on July 31, in recognition of her past services and contribution.

“The approval of the shareholders of Tanco at a general meeting is required for the proposed retirement gratuity payment pursuant to Section 230(1) of the Companies Act 2016.

“Details of the proposed retirement gratuity will be disclosed in a circular to shareholders which will be dispatched to shareholders in due course,” Tanco said in a bourse filing on Friday (July 22).

Lee Sing, 63, was appointed to Tanco’s board as executive director in July 1995. She is the aunt of Tanco managing director Datuk Seri Andrew Tan Jun Suan and executive director Christopher Tan Khoon Suan.

According to Tanco’s 2021 annual report, Lee Sing holds 7.14 million shares or a 0.43% direct stake in the company.

Tanco saw its net loss widen by 30% to RM9.38 million in the nine months ended March 31, 2022 (9M FY22) compared with RM7.19 million a year ago, mainly due to higher administrative expenses and finance costs.

As a result, the group’s retained profits also dropped to RM7.36 million as on March 31 this year, down from RM16.74 million as on June 30, 2021 (FY21).

As on March 31, Tanco’s total borrowings stood at RM41.48 million.

Shares of Main Market-listed Tanco has fallen by 55% from its all-time high of 56 sen on April 12 to close at 25 sen on Friday, giving it a market capitalisation of RM427.75 million.