PROPERTY developer South Malaysia Industries Bhd (SMI) which is facing backlash over governance concern has had all four resolutions proposed by its current board of directors “rejected and voted down” during the company’s 53rd annual general meeting (AGM) in Johor Bahru today (June 26).
This decisive rejection came from proxies representing Target 1 Sdn Bhd, Honsin Apparel Sdn Bhd and HIQ Media (M) Sdn Bhd who collectively hold 50.05% of SMI’s shares.
“Given this absolute majority, the outcome of the voting was effectively determined, rendering further polling unnecessary,” the company pointed out in a Bursa Malaysia filing
“Consequently, pursuant to an order from the Kuala Lumpur High Court dated June 20 arising from an application filed by (self-nominated director) Teh Chee Hoe, the AGM has been adjourned to a future date to be set by the Court.
The four resolutions set out in SMI’s Notice of the 53rd AGM were:
- To re-appoint Messrs UHY Malaysia PLT as auditors of the company until the conclusion of the next AGM at a remuneration to be determined by the directors;
- To approve the payment of directors’ fees and benefits of up to RM350,000 to non-executive directors of the company and subsidiaries;
- To re-elect Latifah Abdul Latiff who is retiring by rotation given she has offered herself for re-election; and
- Authority to allot and issue shares in general pursuant to Sections 75 and 76 of the Companies Act 2016.
“This unprecedented outcome demonstrates shareholders’ concerns regarding the governance and direction of the company, hence marking a pivotal moment for SMI and its stakeholders,” a market observer told FocusM.
Earlier on June 17, SMI said it had rejected a proposal to nominate Teh and three others as directors at its AGM, citing violations of corporate and securities regulations.
In a stock exchange filing, SMI had received the proposal on June 12 from Teh who nominated Ng Fun Kim, Ling Chi Hoong, Amy Tan Li Peng and himself for election to the company’s board.
“Based on the investigations by the company, the SMI board of has been advised that Teh did not satisfy the requirements of Section 323 of the Companies Act 2016 (CA 2016),” noted SMI.
“Additionally, he (Teh) is also connected to Target 1 Sdn Bhd which has issued a notice of unconditional mandatory take-over offer dated Aug 20 on the company (SMI).”
At the close of today’s (June 26) market trading, SMI was down 0.5 sen or 1.54% to 32 sen with 1,000 shares traded, thus valuing the company at RM67 mil. – June 26, 2025
