KUALA LUMPUR (June 13): Bahvest Resources Bhd dropped the resolutions proposed for its extraordinary general meeting (EGM) on Tuesday (June 13) following the resignation of three board members it had earlier wanted to remove.

The group told Bursa Malaysia that all eight EGM resolutions were withdrawn, including a proposal to establish an employee’s share option scheme.

The EGM’s main aim was to remove the group's founder and former managing director-cum-chief executive officer Datuk Lo Fui Ming, his son Lo Tek Yong as executive director, and non-executive chairman Datuk Seri Dr Md Kamal Bilal.

 All three of them resigned from the board between end-May and early June, while paring their shareholdings in the gold mining group. Their resignation came after the Malaysian Anti-Corruption Commission (MACC) conducted a raid at Bahvest’s operation centre in Tawau and detained Fui Ming, Tek Yong and several other key management personnel.

Shareholders led by Datuk Lim Nyuk Sang @ Freddy Lim with over 10% stake, had called for the EGM, seeking to replace the trio with Chong Tzu Khen, Law Ngia Meng and Chong Mee Fah @ Frederick Chong, all three of whom were appointed to the board last month.

Lim was not present at the EGM on Tuesday.

Despite the resignation of the three board members, the loss-making group proceeded to hold the EGM as planned at a luxury hotel here, with incumbent board members emphasising to shareholders that the group’s daily operation remains intact despite the boardroom changes, according to a person who attended the meeting.

“We were told of the RM20.4 million demanded by Southsea [Gold Sdn Bhd], about RM13 million was transferred from [Bahvest] when Datuk Lo [Fui Ming] was about to exit the company,” a minority shareholder told The Edge after attending the EGM.

Bahvest’s board did not speak to the media after the EGM to avoid running foul of the sub judice rule (under judicial consideration and therefore prohibited from public discussion elsewhere) amid the legal battle between current and former shareholders.

The group had on May 3 received a letter of demand seeking RM20.4 million for alleged wrongful occupation and trespass into a lease land belonging to Southsea Gold, which in turn is controlled by Fui Ming.

“The board says they will not be paying the remaining RM7 million to Southsea,” the shareholder said, but declined to be named.

“We also asked why the trespassing issue was not brought up in the past as Bahvest gold mining operation has been there since 2018. One of the independent directors said they were not briefed about this matter by the previous management,” he added.

Prior to the boardroom tussle, Bahvest had five directors, including the three that were removed. Senior independent non-executive director Tan Sri Nik Hashim Nik Ab Rahman has since retired and been replaced by Rohaiza Mohamed Basir, daughter of former International Trade and Industry Minister Tan Sri Rafidah Aziz.

That leaves independent non-executive director Sim Kay Wah as the only original board member still serving.

“Other questions raised include whether they will host future shareholders’ meetings in KL or Tawau, but the board did not commit on anything. Previous meetings were in Tawau, so it was inconvenient for KL shareholders to attend,” said the shareholder.