Tuesday, November 16, 2010

Sime Darby's 7 directors step down in surprising move at AGM

KUALA LUMPUR: In a surprising move at SIME DARBY BHD []'s annual general meeting on Tuesday, Nov 16, six directors did not seek reelection while one resigned, as the group seeks to steer back into profitability after massive losses from its energy and utilities division.

This was the first time that such a large number of its directors had decided not to seek reelection at the AGM.

The move by the directors not to see reelection was not part of the resolutions to be passed at the AGM and came to a surprise to shareholders. The resolutions were also not mentioned in the annual report handed out to shareholders at AGM.

The six were Sime Darby deputy chairman Tun Ahmad Sarji Abdul Hamid, Arifin Mohamad Siregar, Tan Sri Ahmad Tajuddin Ali, Datuk Seri Mohamed Sulaiman, Datuk Dr Abdul Halim Ismail and Datin Paduka Zaitoon Othman.

Raja Tan Sri Arshad Raja Tun Uda, who was the chairman of Sime Darby's board audit committee and a member of the board risk committee, resigned at the AGM. He was appointed to the board on Sept 14, 2007.

Shareholders were surprised when Sime Darby Bhd chairman Tun Musa Hitam announced at the AGM that following the latest turn of events, five new directors had been appointed to the board.

They are Permodalan Nasional Bhd president Tan Sri'' Hamad Kama Piah Che Othman, Tan Sri Yusof Basiran, Zaiton Mohd Hassan, Azmi Mohd Ali and Sime Darby acting president and group chief executive Datuk Mohd Bakke Salleh was appointed as executive director.

Their appointments would come into effect from Nov 26.

Bakke told a press conference after the AGM: 'I think they all have their own personal reason as to why they didn't seek for re-election, more than four of them have passed the age of 70. I can only make a guess but it is not appropriate.'

On the RM2.1 billion loss provisions from the energy and utilities division, Bakke said Sime Darby would commence civil suits over the cost overruns before year-end.

He also said Sime Darby was planning to divest some of its businesses and final decisions could be made as earlier as the first quarter of next year.

'There are some investments and businesses we are looking to divest and offer to our joint venture partners to takeover,' he said. (See related stories).

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