KUALA LUMPUR (Dec 8): A total of 74.3% of the votes cast at South Malaysia Industries Bhd’s (KL:SMI) adjourned 53rd annual general meeting (AGM) on Monday (Dec 8), based on the number of shares held by the shareholders, was marked as "disqualified" in the results filed by the company with Bursa Malaysia.
According to the filing, 105.08 million shares — or 74.3% of voting shares — were deemed disqualified for all five resolutions tabled at the meeting held in Johor Bahru. Only 25.67% of votes cast were in favour of the resolutions, while a minimal 0.03% were against.
SMI said the disqualified votes were from shareholders who had indicated abstention in their proxy forms or who refrained from voting due to a conflict of interest.
The resolutions tabled included the reappointment of UHY as auditors, the approval of directors’ fees and benefits for non-executive directors, and the re-election of Latifah Abdul Latiff as a director. Shareholders also voted on the mandate to issue new shares under Sections 75 and 76 of the Companies Act 2016, as well as a resolution to maintain the adjournment of the 53rd AGM pending the outcome of a related appeal in the Court of Appeal involving shareholder Teh Chee Hoe.
SMI had said in a previous bourse filing that Teh was linked to Target 1 Sdn Bhd, which launched an unconditional mandatory takeover offer for SMI on Aug 20, 2024. Teh, through his lawyers in a letter to The Edge received on Dec 10, denied that he was connected to Target 1.
Target 1, controlled by Francis Leong Seng Wui, holds a 30.67% stake in SMI. Both Teh and Leong are executive directors of Revenue Group Bhd (KL:REVENUE), where they each own a 5.47% stake.
Teh had earlier initiated legal action to compel SMI to circulate his notice of intention and table the nominations of himself and three others — Ng Fun Kim, Ling Chi Hoong and Amy Tan Li Peng — for election to the board at the 53rd AGM. The Court of Appeal previously ordered the AGM to be adjourned pending disposal of the case.
On Dec 4, the Court dismissed Teh’s application, allowing the company to proceed with reconvening the AGM on Dec 8.
SMI had earlier maintained that Teh did not meet the requirements of Section 323 of the Companies Act 2016, which governs a member’s right to request circulation of proposed resolutions to be considered at a general meeting.
SMI’s shares closed unchanged at 24 sen on Monday, giving the company a market capitalisation of RM50.39 million.
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SMI rejects board nominations ahead of AGM over regulatory concerns
*Note: This story has been updated as Teh Chee Hoe, through his legal representatives, contacted us to deny SMI's assertion that he is connected to Target 1. His denial is now included in the story.