This article first appeared in The Edge Malaysia Weekly on July 15, 2024 - July 21, 2024

Last Friday (July 12), EVD Bhd (KL:EVD) reinstated its major shareholder Mah Seong Huak as CEO after a six-month suspension. The reinstatement was initiated after what appeared to be a conclusion to a boardroom tussle that had started earlier this year.

In a Bursa Malaysia filing, the ACE Market-listed company, which provides information and communications technology solutions for transportation systems, said the decision was made after a special board meeting on the same day.

What is baffling is that EVD did not provide any reason for the reinstatement. In fact, back when it had decided to suspend Mah on Jan 11 — a decision that was also announced through a stock exchange filing — it did not provide a reason then either. It only said that the suspension would have no financial or operational impact on the company.

Following the suspension, Mah attempted to remove four directors. There was also a lawsuit he had filed against the company, and against him by a director, but these were later discontinued.

What are investors to make of this? Should they be worried about the goings-on at EVD, especially when there is so little information?

It does not help that the company recently reported a net loss of RM24.85 million for the 15 months ended March 31, 2024. (It changed its financial year end from Dec 31 to June 30, hence there are no comparative figures).

How is it that the company has been able to get away with saying so little even though the development is significant? Bursa should compel the company to explain the reinstatement. Mah is not just the top executive at the company, he is also the biggest shareholder with a 30.08% stake, based on Bloomberg data.

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