THE Minority Shareholders Watch Group (MSWG) has taken Homeritz Corp Bhd to task for not having a chairman since its listing.
To re-cap, Homeritz was the first initial public offering (IPO) on Bursa Malaysia for 2010.
The Muar-based firm is an integrated original design manufacturer (ODM) of upholstered home furniture. It is also an original equipment manufacturer (OEM) that contract manufactures based on designs provided by customers.
“This is not in line with Practice 1.2 of the Malaysian Code of Corporate Governance (MCCG) which stipulates that PLCs (public listed companies) appoint a chairman who will instill good corporate governance practices, leadership and ensure the effectiveness of the board,” commented the shareholder activism group.
Homeritz has stated in its Corporate Governance Report that it intends to maintain the current board composition until the need for a chairman arises, according to MSWG.
“Does the Company have any plans of appointing a chairman, and if yes, by when?” asked MSWG which will bring this matter up during Homeritz forthcoming annual general meeting (AGM).
Elsewhere, MSWG will also query Johan Holdings Bhd at the latter forthcoming extraordinary general meeting (EGM) pertaining to a proposed disposal which is deemed a major disposal thst may result in the listed issuer being no longer suitable for continued listing on Bursa Malaysia (Paragraph 10.02 (eA) of Main Market Listing Requirements [MMLR]).
This follows a proposal by Johan Investment Pte Ltd (JIPL), a wholly-owned subsidiary of Johan Holdings, which has proposed to dispose its entire equity interest in Diners Club (Singapore) Pte Ltd (DCS) to Ezy Net Pte Ltd, Candypay Holdings Pte Ltd and Genesis Business Holdings Pte Ltd for S$103.57 mil (RM313.98 mil).
DCS is in the provision of charge card and credit card services which are currently under Johan’s hospitality and card business segment.
“How does Johan plan to mitigate the significant impact of revenue loss in the near-term?” enquired MSWG.
This is given DCS and another subsidiary collectively contributed 86.03%, 85.15% and 84.05% of Johan Holding’s total revenue for the past three financial years up to FY2020.
In a related development, MSWG also wanted to know from Johan Holdings as to what extent will its three remaining business segments – general trading, the provision of management and secretarial services and hospitality businesses – are able to cushion the short-term financial impact?
“If the company is classified as an affected listed issuer under Paragraph 8.03(A)(2) of the MMLR after the major disposal, how will Johan Holdings rectify the situation to ensure that its listing status remains unaffected?” asked MSWG. – Jan 22, 2021
