THE Minority Shareholders Watch Group (MSWG) is seeking an explanation from UEM Edgenta Bhd at its forthcoming annual general meeting (AGM) over the incurrence of a RM12.6 mil one-off staff rationalisation cost in FY2021 for its infrastructure services and asset consultancy divisions.
UEM Edgenta will stage its fully-virtual 59th AGM this Thursday (June 16) at 3pm from its head office in Bangsar South City, Kuala Lumpur.
Apart from wanting the asset management and infrastructure solutions consultant to shed light into its staff rationalisation exercise, MSWG is also curious as to why staff wages and salaries had increased by 12% (or RM80.18 mil) to RM753.68 mil in FY2021 from RM673.5 mil previously.
“The wages and salaries in FY2019 were RM660.82 mil. Please explain the reason for the significant increase in wages and salaries,” insisted the shareholder activism group.
In a related matter, MSWG also queried UEM Edgenta as to why there were massive resignation and recruitment activities throughout its FY2021 during which it recorded an unusual high number of resignations and recruitment of non-executive staff.
A total of 8,095 non-executive staff resigned while 10,107 non-executive staff were hired. As of FY2021, the company employed about 22,000 employees.
Elsewhere, MSWG is keen to know from Capital A Bhd (formerly AirAsia Group Bhd) the progress of its regularisation exercise after the budget airline operator fell under Bursa Malaysia’s Practice Note 17 (PN17) status on Jan 7 this year.
“How soon will the company be able to regularise its status considering that it is still incurring losses with increasing shareholders’ deficit and current liabilities exceeding its current assets?” asked the shareholder activism group.
Capital A had stated in its Annual report 2021 that it is in the process of addressing the matter which does not reflect the reality of its cash flow position.
The company also expressed confidence that its robust and diverse business portfolios will allow it to fast-track the regularisation of its financial position while affirming the strong viability of its business moving forward.
Capital A will hold its fifth virtual AGM on Thursday (June 16) at 10am from its head office in KLIA2, Sepang.
Also in MSWG’s probing list is Sime Darby Plantation Bhd, whereby the shareholder activism group wants to know how many foreign workers had been compensated under the group’s remediation of recruitment fees totalling of RM81.9 mil to its existing workers and former workers who left the group on or after Nov 1, 2018.
With regard to the notice of findings issued by the US Customs and Border Protection (CBP) against the group on Jan 28 this year, MSWG is also curious if the group expects further compensations to be made to its foreign workers in 2022 in line with the notice and following the completion of (ethical trade consultant) Impactt Ltd’s report.
“If so, what is the estimated compensation to be paid?” asked MSWG.
Sime Plantation will hold its 19th virtual AGM on Thursday (June 16) at 10am from the New World Petaling Jaya Hotel in Kelana Jaya. – June 13, 2022
