KUALA LUMPUR: The board-level disagreement at Lysaght Galvanized Steel
Bhd has reached a boiling point that spurred the resignation of Liew Swee Mio @ Liew Hoi Foo from the board and his stepping down as the company’s managing director.
The steel product maker told Bursa Malaysia that the board was not able to agree, for the purposes of inclusion in the directors report, the identity of the ultimate holding company.
According to the filing on Wednesday, Liew, claiming personal knowledge, has insisted that the immediate holding is no longer the ultimate holding company.
However, “all the independent directors, not being privy to the affairs of the immediate holding company nor having received any notification to the contrary and based on publicly available records and legal advice, still regards (sic) the immediate holding company as the ultimate holding company.”
The board had accepted Liew’s resignation as director with effect from April 27.
“Mr Liew has consented to be appointed as the chief executive officer of the company effective from April 27, 2016, until May 31, 2016, in order to facilitate the smooth handover and duties,” Lysaght said.
The company said his duties as CEO are “essentially the same as those previously exercised by him” except that he is no longer a member of the board,
Last year there were rumours of a family tussle involving Liew and his sister-in-law Chew Meu Jong, the daughter of the late founder Chew Kar Heing.
Despite expectations that Liew would be ousted at Lysaght’s AGM in June last year, he was reelected instead.
Meu Jong brushed off the rumours, saying: “By this action, it is a clear indication that there is obviously no family tussle as rumoured; after all Liew is my brother-in-law. Of course, in any business, there are differing views, which is healthy in any successful business.”
The company remarked that she had become a substantial shareholder because “grant of probate was obtained on July 10, 2015. His (the late founder’s) shares went to his estate.”
Lysaght’s notice continued: “At the time of review of the draft audited accounts of Lysaght Galvanized Steel Bhd for the year ended Dec 31, 2015, by the board, she realised that her position as managing director of Chew Bros (M) Sdn Bhd does not deemed her to hold interest in Lysaght (M) Sdn Bhd.”
Lysaght (M) Sdn Bhd is the majority shareholder in Lysaght Galvanized Steel with just over 55% equity interest. Chew Bros (M) Sdn Bhd reportedly owns a 40% stake in Lysaght (M) Sdn Bhd.
Lysaght shares shed 2 sen to close at RM3.58 on Wednesday.
Bhd has reached a boiling point that spurred the resignation of Liew Swee Mio @ Liew Hoi Foo from the board and his stepping down as the company’s managing director.The steel product maker told Bursa Malaysia that the board was not able to agree, for the purposes of inclusion in the directors report, the identity of the ultimate holding company.
According to the filing on Wednesday, Liew, claiming personal knowledge, has insisted that the immediate holding is no longer the ultimate holding company.
However, “all the independent directors, not being privy to the affairs of the immediate holding company nor having received any notification to the contrary and based on publicly available records and legal advice, still regards (sic) the immediate holding company as the ultimate holding company.”
The board had accepted Liew’s resignation as director with effect from April 27.
“Mr Liew has consented to be appointed as the chief executive officer of the company effective from April 27, 2016, until May 31, 2016, in order to facilitate the smooth handover and duties,” Lysaght said.
The company said his duties as CEO are “essentially the same as those previously exercised by him” except that he is no longer a member of the board,
Last year there were rumours of a family tussle involving Liew and his sister-in-law Chew Meu Jong, the daughter of the late founder Chew Kar Heing.
Despite expectations that Liew would be ousted at Lysaght’s AGM in June last year, he was reelected instead.
Meu Jong brushed off the rumours, saying: “By this action, it is a clear indication that there is obviously no family tussle as rumoured; after all Liew is my brother-in-law. Of course, in any business, there are differing views, which is healthy in any successful business.”
An eyebrow-raising filing with Bursa Malaysia made by Lysaght on Tuesday last week possibly added fuel to the rumours again. Lysaght gave notice that Meu Jong had ceased to be a substantial shareholder in the company.
The company remarked that she had become a substantial shareholder because “grant of probate was obtained on July 10, 2015. His (the late founder’s) shares went to his estate.”
Lysaght’s notice continued: “At the time of review of the draft audited accounts of Lysaght Galvanized Steel Bhd for the year ended Dec 31, 2015, by the board, she realised that her position as managing director of Chew Bros (M) Sdn Bhd does not deemed her to hold interest in Lysaght (M) Sdn Bhd.”
Lysaght (M) Sdn Bhd is the majority shareholder in Lysaght Galvanized Steel with just over 55% equity interest. Chew Bros (M) Sdn Bhd reportedly owns a 40% stake in Lysaght (M) Sdn Bhd.
Lysaght shares shed 2 sen to close at RM3.58 on Wednesday.
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