PETALING JAYA: The government’s movement control order, which kicks off today until the end of the month, has prompted an increasing number of companies to postpone their respective AGMs and EGMs that were originally scheduled for this month.
Among the companies that announced their postponements on Bursa Malaysia yesterday are Manforce Group Bhd, Pavilion Real Estate Investment Trust, Paragon Globe Bhd, Wellcall Holdings Bhd, MyNews Holdings Bhd, Eco World Development Group Bhd, Sunsuria Bhd and Bursa Malaysia Bhd.
In a statement from law firm Mah-Kamariyah & Philip Koh, corporate lawyer Philip Koh said Section 340 of the Companies Act 201 provides that a company is statutorily obliged to hold an AGM within six months from its financial year end.
“A board of directors’ resolution may be passed, this can be in the form of circular resolution if in accordance with the company’s articles of association. The board can take note of the government’s directive as to movements and opening of business premises.
“It can also consider that it is in the best interest of the company to postpone the convening of the AGM given the hazard of exposure to Covid-19 during the shareholders’ meeting.”Koh added that no application is needed for a company to extend the date of the AGM, save and except the re-scheduled AGM is held not beyond 15 months from date of the financial year end.
“If the date is to be extended further, an application would have to be made to the Companies Commission of Malaysia.”
Koh also said a Bursa-listed company would need to consider that any deferment of AGM, which is the major organ of the company for management accountability in governance, has to take into consideration the shareholder’s investor interests.
“An appropriate disclosure announcement will be required under the Bursa Listing Rules.”
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