KUALA LUMPUR: Datuk Kasi K.L. Palaniappan, one of the co-founders of property developer MK Land Bhd, was ousted from the company after failing to garner sufficient votes from shareholders to remain as a director.
The 59 year-old architect, who owns a 16% stake in MK Land, had sought for a re-election at the company’s AGM yesterday.
It is believed that P. Kasi, as he is known, had lost the support of major shareholder and co-founder Tan Sri Mustapha Kamal Abu Bakar.
Mustapha controls 47% of the company.
The split between the two long time business partners came after shares in MK Land plunged to its lowest level in almost a decade.
The stock had last changed hands at 23.5 sen on Wednesday, before trading was suspended by the exchange to make way for the announcement.
The stock will resume trading at 3.30pm.
Meanwhile, in a separate announcement, MK Land said independent director Hong Hee Leong also left the company. The 60 year old accountant had decided not to seek re-election at yesterday’s AGM.
Hong had been a director at MK Land since August 1999.
MK Land is known by its flagship project Damansara Perdana, but had been struggling in recent years to replicate its previous success. The company is slowly fading away from investors’ radar, as the market’s attention has shifted to more exciting developers.
Despite the recent challenges, MK Land has remained profitable.
Last month, MK Land posted a net profit of RM4.28mil on revenues of RM42.67mil.
The bulk of its revenue was generated by the property development segment, mainly generated from construction progress, sale of on-going projects and completed properties in Damansara Perdana, Damansara Damai and Meru projects.
The group has about 4,908 acres of undeveloped land bank in the Klang Valley, Perak and Kedah.
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