MSWG’S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS
KIM TECK CHEONG CONSOLIDATED BERHAD (“KTC”)
KTC announced the resignation of its Independent Director, Mr Wee Hock Kee who is Chairman of the Audit and Risk Management Committee as well as a member of the Nomination Committee on 12 September 2018.
In his resignation letter to the Chairman of the Board, the Independent Director had stated the following:
“I feel I have no choice but to step down, due to the recent development in the boardroom wherein my role as the Chairman of the Audit and Risk Management Committee has been undermined.
The Board had rejected the advice of the Audit and Risk Management Committee on a significant accounting matter (a significant audit finding on impairment reported by our external auditors in their Audit Review Memorandum) that my Committee considers it cannot compromise over; and all means to resolve the disagreement had been exhausted. It is irresolvable concern about disclosure and financial reporting of the fourth quarter 2018 unaudited results. This breakdown of trust and confidence on us (collectively as members of the Audit and Risk Management Committee) has diminished our effective contribution as an oversight board for financial reporting.
Hence, I as the Chairman of the Audit and Risk Management Committee take full responsibility for this impasse and the best way is to resign as a board member and pave the way for the appointment of a new Chairman of this board financial oversight committee. I believe I have served the board to my best ability and exercise my fiduciary duties in good faith taking into account the interest of ALL shareholders.”
[Source: KTC’s announcement on Bursa Malaysia’s website on 12 September 2018]