English

08 March 2019

MESSAGE FROM THE CEO

Why Two-tier Voting Must be Made a Rule Under the Listing Requirements

The Malaysian Code on Corporate Governance (MCCG) was published in April 2017.

It is going to be close to two years now and we still find companies that do not adopt the Two-tier voting process for independent directors beyond the 12-year tenure.

The excuses/reasons are about the same and not convincing:

• It is against the Companies Act 2016 (although the SC has, in an FAQ, explained why the Two-tier voting process does not offend the Companies Act 2016)
• We need to change our Constitution – a change that can be done expeditiously but is often not carried out expeditiously
• Our directors know best (yes, there are such companies and we will share the names of these companies with the regulators)
• We have explained an ‘alternative’ as required by the MCCG – regardless of whether the ‘alternative’ is a suitable substitute in substance for the advocated Practice

22 February 2019

MESSAGE FROM THE CEO

The MAHB - Air Asia Spat

While we all wish that the issues could be settled amicably, this is not the case.

There is now a court case to hear MAHB’s (Malaysian Airports Holdings Berhad’s) suit against Air Asia (AirAsia Group Bhd and Air Asia X Bhd) for RM36.12 million for outstanding airport taxes.

Air Asia has filed a counter-claim against MAHB for over RM400 million.

The fact that things has come to a head, resulting in legal action, only indicates that the parties were not able to iron out a mutually acceptable amicable outcome.

It is perhaps best that the courts, as the final arbiter of contentions, be allowed to deliberate on the suits by both parties (the claim and the counter-claim).

15 February 2019

MSWG'S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS

PERMAJU INDUSTRIES BERHAD ("PERMAJU")

RESIGNATION OF AUDITORS

The Board of Directors of Permaju had on 11 February 2019 announced that the Company had on that day received a notice in writing dated 8 February 2019 (“Notice”) from Messrs. Ernst & Young (“the Auditors”) of their intention to resign as Auditors of the Company.

The reason for the resignation was due to the Company’s wish to appoint another auditor.

Save for the above, the Board of Directors informed that the Company is not aware of any other matters that need to be brought to the attention of the shareholders of Permaju.

25.01.2019

MSWG’S WATCHLIST

SELANGOR PROPERTIES BERHAD

Part A - Circular to Shareholders in relation to Proposed Selective Capital Reduction and Repayment Exercise of Selangor Properties Berhad ("SPB") pursuant to Section 116 of the Companies Act, 2016 ("Proposed SCR") Part B - Independent Advice Letter from Mercury Securities Sdn Bhd to the Disinterested Shareholders of SPB in relation to the Proposed SCR

Recommendation by Mercury Securities Sdn Bhd:

Premised on the above and our evaluation as a whole, although the Proposed SCR is deemed not fair, we are of the view that the Proposed SCR is reasonable.

Accordingly, we recommend that the disinterested shareholders of SPB VOTE IN FAVOUR of the Special Resolution in respect of the Proposed SCR to be tabled at the forthcoming EGM.