SERBA Dinamik Holdings Bhd faces an uphill task to convince the investor fraternity judging from its downward spiral which touched a second limit down at the commencement of trading this morning prior to posting a strong rebound which eventually makes the counter the most active stock on Bursa Malaysia.
Set against a backdrop of bearish market sentiment stemming from the two-week total lockdown which kicks off today, it remains to be seen what the future holds for the global oil & gas (O&G) integrated engineering services provider.
After hitting a 30% limit down at 79.5 sen, Serba Dinamik was traded 16.5 sen or 14.6% lower at 96.5 sen (11.15am) with 1.17 billion shares traded, thus valuing the company at RM3.6 bil. The stock closed down 48 sen or 29.81% yesterday (May 31) at RM1.13.
Yesterday, the company issued a media statement to clarify on the rights of any shareholders who own more than 10% stake in the group – in accordance with Section 310 (b) of the Companies Act (CA) 2016 – to convene an extraordinary general meeting (EGM).
On Sunday, the institutional Investors Council (IIC) has joined the Minority Shareholders Watch Group (MSWG) in objecting to a proposal by the Serba Dinamik board to remove external auditor KPMG PLT in light of the flagging of some audit matters in relation to the company’s FY2020 financials.
This includes questioning a move by the company’s non-independent non-executive Datuk Abdul Kadier Sahib to remove KPMG as its external auditor.
In retaliation, Serba Dinamik said Section 311 (2) of the CA 2016 allows the said shareholder to request the board to convene an EGM through the issuance of a notice.
“A special notice is required to call for the motion to propose the removal of auditors and nominate new auditors of the group in accordance with Section 277 (1) of the Companies Act,” justified Serba Dinamik.
“Based on the above provisions, Abdul Kadier who owns 15.96% stake in the group, has a prerogative to issue a special notice to call for an EGM and moot the motion to remove auditor and nominate a new one.”
In its efforts to continuously assist KPMG, Serba Dinamik reiterated that it has taken prompt action to address the matters much earlier prior to the announcement made to Bursa Malaysia on May 26 (presumably pertaining the flagging of some audit matters by its external auditor KPMG PLT in relation to the company’s FY2020 financials).
“Serba Dinamik has also engaged potential international independent firms to assess the veracity and accuracy of the matters brought up by the external auditor after consulting with Bursa Securities,” added the company. – June 1, 2021
