Serba to rid 2 burdens off its chest soon: New external auditor and INEDs

HAVING cemented the appointment of its special independent reviewer in Ernst & Young Consulting Sdn Bhd (EY) last Friday (July 2), Serba Dinamik Holdings Bhd now targets to appoint its new external auditor by end-July 2021.

In response to a status update required by Bursa Malaysia, the board of the global integrated oil & gas (O&G) outfit said it had submitted the request of proposal for provision of external audit to international audit firms on June 27.

“In conjunction (with this), the company will make an immediate announcement to this effect immediately upon the finalisation of appointment of the new auditors,” Serba Dinamik pointed out in a stock exchange filing.

On the same note, the company’s board noted that it has also requested a meeting with the Companies Commission of Malaysia (SSM) for a consultation in relation to the appointment of its external auditors pursuant to Section 272 of the Companies Act 2016.

Recall that, KPMG PLT has quit as Serba Dinamik’s external auditor with immediate effect on June 24 pursuant to Section 281 of the Companies Act 2016 (CA 2016).

In a related development, the company said it has identified two new independent directors with a Bursa Malaysia announcement “to be made on Thursday (July 8)”.

“The board has finalised the two names – that of one man and a woman – who are both experienced individuals and subject matter experts in governance and integrity and risk management,” a source close to the top management told FocusM.

“Both names are very important to Serba Dinamik in order to enhance and strengthen its board composition. This is definitely a good sign to restore confidence of shareholders. The management has nothing to hide and will allow its independent directors to protect the interest of its shareholders at all cost.”

To re-cap, Serba Dinamik’s pool of independent directors has shrunk to only two at present after five of its independent non-executive directors (INEDs) resigned from its board on June 24, including recently appointed Masleena Zaid.

The other four were old guards who had cited differences in opinion that they had with the decisions made by the board which in their views were not to the best interest of the company.

The four INEDs were Tengku Datuk Seri Hasmuddin Tengku Othman, 59; Hasman Yusri Yusoff, 60; Rozilawati Basir, 50; and Sharifah Irina Syed Ahmad Radzi, 44.

On a brighter note, Serba Dinamik has extended its gain for the second day running this week after inching up 2.5 sen or 5.15% to 51 sen with a heavy volume of 1.08 billion shares which thus valued the company at RM1.9 bil.

“Prevailing strong buying interest coupled with no incidence of forced selling by company founder Datuk Dr Mohd Abdul Karim Abdullah has enabled the share price to close in the green for three consecutive days (since Friday, July 2) now,” a market observer told FocusM.

“There were some profit taking activity in the afternoon part but was well absorbed by strong buying interest from retailers. Technically, we can expect 48.5 sen to be a strong support level although there could be more upside potential in the next few weeks.” – July 6, 2021

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