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MESSAGE FROM THE CEO

Sapura Energy Berhad held its AGM on 18 July 2018 for its Financial Year Ended 31 January 2018.

MSWG attended the AGM and raised some issues. Other institutional investors and retail investors also raised issues. The main issue raised relates to the remuneration of the PGCEO (President/Group CEO). The issue can be better appreciated from the following perspective of alignment of management (and directors) interest with shareholders interest.

In MSWG’s pre-AGM letter to the company, we stated that there is no alignment of interest between shareholders and management.

Alignment, in the company’s instance, mainly involves looking at the remuneration of the PGCEO in the light of the performance of the company.

If we examine the financial statements, we notice that the company is not in the best of health currently. Though the future may seem bright, alignment is about current alignment based on current circumstances.

13.07.2018

MSWG’S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS

MULTI SPORTS HOLDINGS LTD (“MSPORTS”)

The Company had on 3 July 2018 announced that the Securities Commission Malaysia (“SC”) had vide their letter dated 27 June 2018 (“SC letter”) reprimanded MSPORTS as a result of its finding that MSPORTS has breached Section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with Section 369(b)(B) of the CMSA for knowingly causing the furnishing of MSPORTS's Financial Statements that is false or misleading to Bursa Malaysia Securities Berhad ("Bursa Securities"), as follows:-

• MSPORTS had failed to disclose the outstanding liabilities under the 8 Loans owed by Baixing in MSPORTS's Financial Statements. In the said Financial Statements, it was disclosed under "Interest-bearing bank borrowings" that MSPORTS's liabilities were RMB11.5 million only instead of the liabilities highlighted in the SC's Notice to Show Cause dated 13 February 2018.
• The non-disclosure of the outstanding liabilities as stated above had caused MSPORTS's Financial Statements, which were lodged with Bursa Securities, to contain false or misleading information relating to the affairs of MSPORTS.

06.07.2018

MSWG Weekly Newsletter

Two Observations Relating to Directors at the AGM

Yes, again, we have passed the peak of the AGM season (May-June).

I would like to share two observations on directors and Chairman at the AGM sessions.

Directors who lack the mingling sensation

29.06.2018

MSWG’S QUICK TAKE ON ON-GOING CORPORATE DEVELOPMENTS

PERAK CORPORATION BERHAD (“PCB”)

PCB held its 27^th Annual General Meeting (“AGM”) on 27 June 2018.

The AGM of PCB was attended by the representatives of MSWG.  As PCB’s current liabilities exceeded its current assets by RM158.5 million, the Auditors had raised doubt on PCB’s ability to continue as a going concern.