KUALA LUMPUR (May 13): Property developer Talam Transform Bhd (KL:TALAMT) is set to hold an extraordinary general meeting (EGM) on Thursday, May 14, for shareholders to vote on the appointment of an auditor to review certain transactions and investments.
The EGM is held pursuant to a consent order recorded before the High Court on April 8, following negotiations between a group of requisitionist shareholders and the board of Talam Transform.
Two non-binding recommendations will be tabled at the EGM for shareholders’ consideration, including the appointment of a qualified auditor to review:
- debt owed to IJM Properties Sdn Bhd;
- the joint venture in Trident Treasure Sdn Bhd;
- investment in Oaxis Sdn Bhd;
- investment in Million Tiara (M) Sdn Bhd; and
- balance sale consideration owed by Xtra Touch Sdn Bhd.
Subject to approval of the first recommendation, the second proposes the appointment of Ernst & Young, Deloitte, KPMG or PricewaterhouseCoopers to undertake the review.
Talam group chief executive officer Datuk Mohamad Razali Mohamad Rahim said that if the resolutions are passed, the board will exercise due care and diligence in determining whether the recommendations are in the company’s best interests.
“The board formed the opinion that these recommendations are unnecessary, but in order to respect the shareholders' views and the board’s neutrality, we are prepared to hear them via the EGM, as long as it is within the boundary of law and [the company’s] constitution,” he told The Edge.
Razali said that appointing an external auditor would incur substantial costs with the process requiring substantial time as some of the transactions were undertaken more than 15 years and have already been audited by the company’s existing external auditors.
He added that the company had received proxy forms representing about 18% of shareholders as at the closing date, with turnout for the EGM estimated to exceed 40%, including proxies.
To recap, a group of shareholders holding about 10% in Talam Transform had in early December last year requisitioned an EGM to propose the appointment of forensic auditors, following a string of quarterly losses.
The requisitionists include substantial shareholders Loo Leong Fatt and Loo Loong Guan, as well as Ang Lam Poah, the CEO of JAKS Resources Bhd (KL:JAKS).
Talam Transform subsequently obtained a court injunction in February to block the EGM, before both parties agreed to the terms under the consent order.
The company has grappled with financial difficulties for much of the past two decades.
For the latest quarter ended Dec 31, 2025, Talam posted a wider net loss of RM7.57 million versus RM4.28 million a year earlier, as revenue fell 65.8% to RM4.74 million from RM13.85 million.
On Wednesday, shares in Talam Transform were unchanged at 7.5 sen, valuing the company at RM88.7 million.