KUALA LUMPUR (June 4): PRG Holdings Bhd (KL:PRG) on Thursday said its board has rejected a proposal from a substantial shareholder to remove its group managing director Andrew Chan Lim-Fai at the upcoming general meeting.
In a Bursa Malaysia filing, the board said the notice did not follow legal requirements. After getting independent legal advice, it found the notice did not meet the required 28 clear days’ notice under Section 322, as the annual general meeting is set for June 25.
“As such, the board has resolved to reject the special notice on the ground of its invalidity,” the company said, adding that the shareholder has been informed of the decision.
PRG received a notice on May 28, 2026 from Datuk Sheah Kok Fah to propose a resolution under Sections 206 and 322 of the Companies Act 2016 to remove Chan, who was appointed on March 26, 2024.
Sheah is PRG’s second-largest shareholder, holding an 8.14% stake, or 39.73 million shares.
Chan, 47, is the son-in-law of PRG’s largest shareholder, Datuk Ng Yan Cheng, who owns a 16.82% stake, or 82.47 million shares, in the company.
PRG mainly manufactures and sells elastic textiles, webbing, and rubber tape products, and also provides smart energy solutions and develops residential and commercial properties.
It reported a loss of RM13.99 million for the quarter ended March 31, 2026, compared with a profit of RM2.27 million a year earlier. The weaker performance was mainly due to a RM13.7 million impairment of financial assets, the absence of construction revenue, and lower contributions from its energy efficiency and manufacturing segments.
Revenue fell to RM50.9 million from RM57.2 million previously, weighed by the completion of construction projects and a weaker US dollar, which affected manufacturing sales.
At market close on Thursday, PRG’s share price was down 5.26% to nine sen, valuing the company at RM44.127 million. Some 1.09 million shares were traded. Year to date, the stock is down 12.5%.