KUALA LUMPUR: Lembaga Tabung Angkatan Tentera's (LTAT) decision to vote against the FGV Holdings Bhd's directors fees at Tuesday's AGM was to protect the interests of its contributors who are members of the armed forces.
The Armed Forces Fund Board, which has a 1.25% stake in FGV, said on Thursday the decision was not taken lightly and was reached following considerable discussion and deliberation.
“The decision was premised on the fact that LTAT strongly believes in shareholder activism, particularly to protect the interests of our contributors, members of the armed forces.
“Given prevailing economic conditions and FGV’s current financial standing, we are of the view that director’s remuneration should commensurate with the current state of affairs at FGV and its prospects ahead,” it said.
LTAT hoped the latter's current board would keep it apprised of its plans to improve the prospects of FGV.
On Tuesday, FGV's major shareholders – the Federal Land Development Authority (Felda), LTAT and Koperasi Permodalan Felda Malaysia Bhd (KPF) – rejected resolutions pertaining to the fee payment of its board members at the company’s AGM.
Felda owns about 33.6% in FGV, followed by KPF with 5% and LTAT with 1.25%.
Resolution 1 sought for the approval of FGV shareholders for the payment of RM2.55mil of directors fees for the financial year ended Dec 31, 2018.
Resolution 2 is for the payment of about RM1.18mil, which is a portion of the directors fee payable to non-executive directors from June 26, 2019 until the next FGV AGM in 2020.
Click here for earlier story: FGV shareholders reject directors’ fees
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