KUALA LUMPUR: Serba Dinamik Holdings Bhd said a major shareholder and director is calling for an EGM to replace KPMG PLT, two days after the company's external auditors raised concerns related to statutory audit.
Non-independent and non-executive Datuk Abdul Kadier Sahib, who owns a 15.96% stake in the company, has proposed the company to appoint BDO PLT as new auditors for the financial year ending June 30.
Serba Dinamik told Bursa Malaysia today that it has received a special notice from Abdul Kadier calling for a vote on the proposals.
"The Proposals are subject to the approval being obtained from the shareholders at an EGM to be convened later," Serba Dinamik said.
"A Circular to Shareholders containing details of the Proposals together with the Notice of EGM will be despatched to the shareholders of the Company in due course," it added.
Trading in the securities of Serba Dinamik were suspended since Thursday at the company's own request after its directors said they were informed by external auditors on Wednesday about “some matters pertaining to statutory audit.”
The company said it was appointing an independent firm for a special independent review to assess the veracity and accuracy of the matters.
The news has prompted several analysts to downgrade the stock amid worries that the unexpected development would create uncertainties until the audit matters are fully resolved.