English

06 October 2017

VOICE OF MSWG

The meeting on the proposed early termination of the Golden Palm Growers Scheme (“the Scheme”) was held on 2 October 2017 as scheduled. MSWG’s representatives attended the meeting as proxies.

The meeting commenced with nomination of the Chairman of the Meeting (“the Chairman”). Two candidates were nominated to chair the meeting, one was a Grower and the other was the Trustee of the Scheme. The Growers objected strongly to the nomination of the Trustee as Chairman as they were of the view that the Trustee might not play an effective role to look after their interests. Pressured by the Growers, the Trustee declined the nomination. The meeting was chaired by the nominated Grower. Ironically and surprisingly, the Growers seemed to have lost trust in the Trustee who was appointed to protect the interests of the Growers under the Scheme.

The Chairman convened the meeting and invited the Monitoring Accountant appointed by the Management Company (MC) to oversee the closure of the Scheme, to make his presentation which encompassed the 12-month Cash Flow Projection of the Scheme (“the Projection”), explanations on the resolutions and consequences of the winding-up of the Scheme in the event neither resolution were to be passed.

30 September 2017

VOICE OF MSWG

UPDATES ON FORUM HELD ON GOLDEN PALM GROWER SCHEME (GPGS) ISSUES

At the forum held at MSWG’s office on 26 September 2017, serious concerns were raised by the investors/growers pertaining to the Management Company’s proposed early termination of the Scheme. The investors/growers could not accept the profitability and cash flow “challenges” given by the Management Company, especially at this 7th year of the Scheme when the FFB yield is expected to improve.

The most serious concern of the investors/growers was of course their inability to recover their capital investment including future benefits. Clearly the investors/growers have indicated their disappointment at the need of the Management Company to prematurely seek termination of the Scheme. Investors/Growers also remained uncertain on the decision to vote for or against the resolutions tabled for the general meeting due to lack of pertinent information in the notice such as the reserve price for the estate and how the net proceeds would be distributed.

24 September 2017

VOICE OF MSWG

Investors in the troubled Golden Palm Growers Scheme (GPGS) have every right to feel aggrieved at the possible loss of their money now that the future of the scheme has been thrown into doubt.

The management company of GPGS has called for a meeting of the investors on 2 October 2017 to determine the scheme's future and is seeking approval from the growers to (i) a grace period of 12 months to find an "optimal realisation" for the plantation; and (ii) an immediate sale of the plantation which "may result in a distressed and lower price sale".

Notwithstanding the bar for governance had been set reasonably high (being governed by the Companies Commission of Malaysia under the 'Sharefarming Scheme' category), losses are now looming for the investors