KUALA LUMPUR (Sept 22): Agricultural systems maker Greenyield Bhd (KL:GREENYB) said it rejected the extraordinary general meeting (EGM) request to remove its group chief executive officer Tham Kin-On as the proposal was not in the company’s best interest.
In an exchange filing on Monday, the company also noted that Kin-On had on Oct 19 stepped down for “personal reasons”, and as such the request "can no longer be considered”.
Greenyield said it deemed the requisition as not in the company’s best interest as the notice seeking the EGM was signed by the same signatories as in an earlier memorandum of understanding, and was also in line with the objective stated in the MOU.
The requisition, brought by seven shareholders holding a collective 51.1% stake, including three of Kin-On’s uncles, also sought to have three individuals — namely Tham Kinyiq, Tham Kin Wai and Chong Sin Hao — “consented” as new directors.
Greenyield said the resolutions seeking the three individuals “consented” as directors were unclear in purpose.
“For these reasons, the board had decided that no to convene the EGM as requested and the company will not act further on the notice of requisition,” it said.
Kim-On had been on the Greenyield's board since December 2016 before he was redesignated as the group CEO in February this year.
He is the son of non-executive chairman Tham Foo Keong, who holds a direct 17.69% stake in the company. Foo Keong also holds an indirect 7.077% held via his wife Twong Yoke Peng and Kin-On.
The seven shareholders who filed the requisition were Kin-On's uncles Tham Chong Sing (who holds a direct 13.1% stake in the company), Tham Foo Choon (13%), Tham Fau Sin (10.9%), Chew Kee Foo (5.6%), Foong Sai Cheong (4.4%), DKIC Capital Sdn Bhd (3.5%), and Voon Sze Lin (0.6%).
Foo Choon is also the deputy non-executive chairman of Greenyield.
Greenyield, founded by the Tham family, mainly manufactures and markets agricultural systems, products and services based on agro-technology.
Shares in Greenyield ended unchanged at 20 sen on Monday, valuing the company at RM110.85 million.
Note: This article has been amended for accuracy.