YFG directors ousted at EGM

YFG Bhd managing director Lim Chong Ling

PETALING JAYA: YFG Bhd’s largest shareholder, General Technology Sdn Bhd, has succeeded in removing six of the company’s directors, including managing director Lim Chong Ling and chairman Dr Roslan A. Ghaffar, at an EGM on Thursday that it and another shareholder had called for.

In a filing with Bursa Malaysia on the same day, the mechanical and electrical service provider said all resolutions to remove the existing directors as well as to appoint six new ones had been approved by shareholders controlling a minimum of 79.68% of the voting shares.

As of Thursday, all the directors to be removed have been dismissed. However, no appointment of new directors had been carried out yet.

The removal of the six directors left the board with only one member at present: Tan Gem Suan, who was appointed as director in February pursuant to the majority of the scheme creditors’ consent and to a court order. General Technology had originally intended to remove him as well at the EGM, but subsequently withdrew the resolution.

General Technology, which holds 11.69% interest in YFG (formerly PJI Holdings Bhd), claimed that the proposed plan to revive the loss-making Practice Note 17 (PN17) company’s financial standing was not concrete enough to turn it around.

YFG’s proposed regularisation plan includes a par value reduction, share consolidation, private placement, rights issue, scheme of arrangement and amendments to memorandum and articles of association,

On Friday last week, YFG directors announced to Bursa Malaysia that they had prepared a joint representation in writing for shareholders’ hearing at Thursday’s EGM.

In the joint letter that was posted on the portal, they said they had been working “diligently and professionally” to ensure that the regularisation plan was one that would result in the company eventually being removed from PN17 status.

“If we are removed as directors of the company, the company’s operations and the progress of the regularisation plan will be materially and severely jeopardised. The regularisation plan is the ultimate plan for the revival of the company. Any delay in the progress of the regularisation plan will cause severe consequences to the company,” the letter said.

YFG closed unchanged on Thursday at 3.5 sen with 3.835 million shares changing hands.