AGM Watch: Digistar queried as audit fee expenses halved in FY2020

THE Minority Shareholders Watch Group (MSWG) will probe Digistar Corporation Bhd at its AGM today as to why the group’s internal audit fee for its financial year ended (FYE) Sept 30, 2020 has reduced by 50% to RM11,567.42 (FYE 2019: RM22,880).

“What is the reason for the huge decrease in fees incurred for the internal audit function of the group?” asked the shareholder activism group. “How many internal audit reports were issued during FYE 2020?”

Given the small amount of fee spent (circa RM963.95 per month), MSWG also seeks assurance from the company’s audit and risk management committee that there would be adequate coverage and if its internal audit function is effective.

Digistar will be staging its 18th AGM at 10am today at the Imperial Heritage Hotel Melaka in Melaka.

Elsewhere, MSWG is also enquiring from LPI Capital Bhd in its forthcoming AGM with regard to the decline in the insurer’s net claims incurred ratio (CIR) which was mainly due to a moderation of Malaysian economic activities due to movement control measures.

“What is the expected net CIR for FY2021 given that the Malaysian economy is recovering from the crisis in 2020?” asked MSWG.

“How will the expected performance of net CIR in FY2021 influence LPI’s profitability in FY2021?”

LPI’s net CIR has seen an improvement to 41.2% in FY2020 from 43.9% in the previous year. In turn, this had contributed to lower combined ratio – a direct measure of the insurer’s profitability to 69.5% for the January-September 2020 period as compared to the industry average of 89.4%.

LPI will be holding its virtual AGM on March 31 (Wednesday) at 11am from its headquarters at Menara Public Bank in Jalan Ampang, Kuala Lumpur.

Lastly, MSWG is also seeking clarification from Eco World International Bhd with regard to the property developers’s various initiatives to improve its cost structure for greater operational efficiencies and to ensure the group is able to weather further storms in the future.

“By how much have the overhead costs been reduced in FY2020 compared to FY2019?” asked the shareholder activism group. “What are the overhead costs that the group has successfully reduced in FY2020?”

Eco World International will be staging its virtual AGM on March 31 (Wednesday) at 10.30am from its Bukit Bintang City Centre Sales Gallery in Kuala Lumpur. – March 29, 2021

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