KUALA LUMPUR (Dec 9): TMC Life Sciences Bhd (KL:TMCLIFE) shareholders have voted to remove its suspended chief executive officer (CEO) Wan Nadiah Wan Mohd Abdullah Yaakob as the director of the healthcare provider, effective immediately.
In TMC’s extraordinary general meeting (EGM) on Monday morning, 58.7% of present shareholders holding 99.98% voted in support, while 41.3% of shareholders who were present in the meeting holding 0.02% of voting shares rejected the resolution.
In total, 54 shareholders holding 1.36 billion shares supported the proposal, while 38 shareholders holding 280,800 shares rejected the motion in the EGM, the bourse filing showed.
Last month, the group received a representation letter in response to the requisition notice from the company’s two largest shareholders — Sasteria (M) Pte Ltd and the Regent of Johor, Tunku Ismail Sultan Ibrahim — calling for an EGM to remove Wan Nadiah as the group’s director.
Based on the group’s latest annual report, Sasteria holds a 70.13% stake, while Tunku Ismail owns 7.64%. Collectively, both shareholders are holding a 77.77% stake in the company, or 1.35 billion shares.
Wan Nadiah was suspended from her roles as group CEO of TMC, and CEO of Thomson Hospitals in January this year. Initially, she faced six allegations of misconduct, but it was expanded to 15 in March, then reduced to eight in August, and finally narrowed to five during the recent domestic inquiry proceedings.
Last week, TMC said Wan Nadiah has been found guilty of all five misconducts following a domestic inquiry, and its board will now determine appropriate disciplinary action against her.
Prior to that, Wan Nadiah pushed back against the allegations, claiming that the group was attempting to “pin the blame” on her for certain contract decisions.
According to a representation letter penned by her that was filed with Bursa Malaysia, the five misconduct allegations relate to the termination of contracts with Great Eastern Life Assurance (M) Bhd and Allianz Life Insurance Malaysia Bhd, as well as the entry into a contract with T-Systems Malaysia Sdn Bhd.
For its first quarter ended Sept 30, 2024 (1QFY2025), TMC’s net profit declined 80.6% to RM2.94 million, from RM15.14 million a year earlier, as revenue fell 11.3% to RM81.97 million, coupled with higher staff costs and other operating expenses.
The company attributed the lower earnings to the termination of certain customer contracts and discounts offered to institutional customers.
Shares of TMC, which have fallen 30% year-to-date, closed unchanged at 50 sen on Monday. At 50 sen, the group was valued at a market capitalisation of RM870.9 million.