THE three biggest FGV Holdings Bhd shareholders rejected a resolution to approve the payment of the directors’ fees at the company’s annual general meeting today, Bernama reports.

Felda is the largest shareholder in FGV with a 21.24% equity. The two other biggest shareholders are Koperasi Permodalan Felda Malaysia Bhd (5%), and Armed Forces Fund Board (1.25%). 

FGV Holdings Bhd chairman Azhar Abdul Hamid said the shareholders’ rejection of resolutions pertaining to the directors’ fees was unprecedented. 

“This is a historic event and the board members are currently discussing what is the most appropriate thing to do; they are looking at the options as to how to resolve this.

“What concerns us most is the interests of the company. We want to make sure whatever decision that we make does not only represent one shareholder’s interests in mind but we have the interests of all shareholders in mind and also the interests of the corporation,” he said at a press conference after the AGM today.

The resolutions that were rejected included the payment of more than RM2.5 million in directors’ fees for the financial year ended December 31, 2018; the payment of RM1.18 million directors’ fees payable from June 26, 2019 until the next AGM; and the payment of benefits payable form June 26, 2019 until the AGM.

The shareholders also declined to approve the payment of meeting allowances of between RM1,000 and RM5,000 to non-executive directors. A resolution to authorise the directors to allot and issue shares pursuant to Section 75 of the Companies Act 2016 was also rejected

Azhar told The Edge Markets it was “as though the shareholders still want us to be directors but do not intend to pay us.”

The Edge said the FGV board held a meeting immediately after the AGM to discuss the possibility of serving without fees. – June 25, 2019.