SINGAPORE: NatSteel Ltd has decided to hold another EGM next week after yesterday's meeting failed to pass resolutions tabled by the company, shareholders at the meeting said.
NatSteel decided not to put the resolutions to a vote because substantial shareholder Oei Hong Leong's representative informed the company beforehand that Oei, whose Sanion Entreprises holds a 29.99% stake in the firm, will vote against all the resolutions.
The company needed a 75% vote to pass the resolutions.
The resolutions include the amendment to the company's articles of incorporation as well as the declaration of either a 55 Singapore cents cash dividend per share or scrip dividends.
The dividend approval is conditional on the green light for the resolution for the amendment to the articles of incorporation.
Oei has vocally opposed the resolutions, particularly the scrip dividends, which he views as dilutive.
Other shareholders have also criticised the company for linking the dividend payments to other resolutions.
A shareholder said Oei needed more time to consider the proposal by controlling shareholder 98 Holdings, which holds 50.31% stake in the company, for a whitewash resolution to be passed to enable Oei to receive additional shares.
The whitewash resolution, which needs to be approved by the Securities Industry Council, will enable Oei to receive additional NatSteel shares without having to make a general offer, which shareholders accumulating 30% or more of listed companies are required to make. – AFX