Still room for discussion over FGV directors' benefits, says deputy minister

The board is investigating six matters on FGV

KUALA LUMPUR: Deputy Economic Affairs Minister Mohd Radzi Md Jidin said there is still room to discuss the move by the major shareholders of FGV Holdings Bhd to reject the resolutions related to the payment of fees and benefits to the company’s board of directors.

“There must be a reason for them to do it. It is not the end of of it and can be solved through proper discussions,” he told reporters on the sidelines of the Malaysian Gas Symposium (MyGas) 2019 here today, organised by Malaysian Gas Association (MGA).

“Let’s see the next course of action by the relevant parties,” Mohd Radzi said.

On Tuesday, in an unprecedented move, the major shareholders of FGV - the Federal Land Development Authority (Felda), the Armed Forces Fund Board (LTAT) and Koperasi Permodalan Felda Malaysia Bhd (KPF) – gunned down resolutions pertaining to the fee payment of its board members at the company’s AGM.

Felda owns about 33.6% stake in FGV, followed by KPF with 5% and LTAT with 1.25%.

The shareholders, nevertheless, approved all the other resolutions including the re-election of directors.

Meanwhile, FGV chairman Datuk Wira Azhar Abdul Hamid said the board members were clueless over the basis of the shareholders’ rejection and are currently discussing the most appropriate action, as well as the options to resolve the issue.

“The situation is now in a bind. 

“It is also ironic that the major shareholders had no problem approving the resolution for the re-election of our board members but then refused to approve the payment of their fees,” added Azhar.

On the matter of Felda’s chairmanship, Mohd Radzi said the announcement would be made soon.

Notably, Tan Sri Megat Zaharuddin Megat Mohd Nor is leaving the group by the end of this month, nearly a year after having been appointed to the post.

He was appointed to head the troubled federal agency on July 27 last year, to succeed Tan Sri Shahrir Abdul Samad.