AGM Watch: Latitude Tree queried over share options

THE Minority Shareholders Watch Group (MSWG) has conveyed its displeasure to Latitude Tree Holdings Bhd with regard to the latter’s intention of extending its employee share scheme (ESS) to the company’s independent non-executive directors (INEDs).

In line with better corporate governance, MSWG said it does not encourage the practice of offering share options to INEDs as they play an independent role (as opposed to an executive role) in the company.

Above all else, INEDs are responsible for monitoring the option allocation to employees and executive directors.

“The risk is that the independent director may be fixated with the share price and this may affect their impartial decision-making which should be made without reference to share price considerations,” cautioned the shareholder activism group.

In this regard, MSWG demands an answer from Latitude Tree as to what are the performance metrics that will be adopted by its ESS committee to assess the eligibility of INEDs under the ESS?

Latitude Tree is scheduled to hold an extraordinary general meeting (EGM) on Feb 26 at 10am at Menara Symphony in Section 13 Petaling Jaya to approve its (i) proposed bonus issue and (ii) proposed ESS exercise.

Elsewhere, MSWG will be questioning APB Resources Bhd at the latter’s AGM on the group’s trade receivables which have increased significantly to RM33.9 mil in FY2020 (2019: RM16 mil).

Interestingly, the shareholder activism group found out from the company’s Annual Report 2020 that 65% or RM22 mil of the trade receivables were more than 90 days past due but not impaired.

“Why weren’t any impairments made for these trade receivables as they have been long outstanding?” asked MSWG.

Additionally, MSWG wanted to know much of the RM22 mil trade receivables is related to the group’s major customers as well as if any allowance for impairment losses expected for FY2021?

APB Resources is scheduled to stage its annual general meeting (AGM) on Feb 25 at 2.30pm at Menara Sentral Vista in Brickfields, Kuala Lumpur. – Feb 19, 2021

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