FGV shareholders' decision signalled loss of trust in board members

The decision by Felda Global Ventures Holdings (FGV) shareholders to throw out the payment of fees and allowances for its board of directors yesterday is a signal for the latter to put the company's interest before their personal gain. 

According to a news report, sources in the industry have indicated the move to vote down the payments during yesterday's FGV annual general meeting also signalled the shareholders' loss of trust in FGV board members.

”The message is clear. We want them (FGV board members) to do their work. If not, please step down or resign,” Utusan Malaysia reported, quoting a senior executive from one of the FGV shareholders. 

It was reported that major FGV shareholders voted down three resolutions in the AGM concerning payments of fees and perks for the board members, despite having approved the board members reappointment. 

The major shareholders who voted against the directors' fees were Felda Land Development Authority (33.7 percent), Koperasi Permodalan Felda (5 percent) and Lembaga Tabung Angkatan Tentera (LTAT) (1.25 percent). 

The Malay daily also reported that another source claimed the down vote was a manifestation of shareholders' disappointment with the FGV board of directors for allegedly coming up with numerous excuses and always shifting the blame to its previous management. 

Economic Affairs deputy minister Mohd Radzi Jidin said the rejection of the resolutions was not a final decision.

He told reporters this morning that there is still room for discussion to ensure the matter can be resolved in good faith.

”I am sure there must be a reason why FGV (shareholders) made the decision. It is not final.

"It can be solved through discussion between all related parties.

”The issue (of voting down the resolutions) just happened yesterday. So, we shall see what the parties would do next,” he said after delivering a speech at the Malaysian Gas Symposium 2019 in Kuala Lumpur. - Mkini