English

Under the Malaysian Code on Corporate Governance (MCCG), the two-tier voting process is integral in retaining long-tenured independent directors (IDs). The application of the voting process is more than critically reviewing the independence of directors but also enabling board renewal. Minority shareholders should carefully consider whether the retention of long-serving IDs is in the company's best interest, especially if those companies are performing poorly.

Recently, Genting Malaysia (GENM) said it is investing another US$100 million (RM438.5 million) to acquire convertible preferred stock (Series F) in Empire Resorts from Kien Huat Realty III Ltd, raising its investment in Empire Resorts Inc to US$624.4 million.
MSWG had commented on the RPTs entered by GENM in the past. In our view, GENM should explain how it sees the investment as being in the best interest of the Company, although the investment is not subject to shareholders’ approval.