English

Technical rubber compound specialist GIIB Holdings Berhad owes an explanation to its minority shareholders as to why it took the company “a good 11 days” to make public that it has been served with an originating summons (OS) by its former executive director Wong Weng Yew.

Wong had filed his OS with the Shah Alam High Court on 19 May, but GIIB has only made known of the legal suit via a Bursa Malaysia filing on 30 May under the subject “Material Litigation

Alternate directors are acknowledged and allowed under the Companies Act 2016. But they may be a relic of the past. With virtual attendance of directors at Board meetings, surely the need for an alternate director is redundant.

From a good corporate governance point of view, while the practice is allowed, MSWG tends to take a precautionary view of the appointments of alternate directors. Shareholders too must question the Board on the rationale behind the appointments.