Majuperak shareholders cut directors’ fees by 50%

They also vote against payment of benefits totalling RM150,000

PETALING JAYA: The shareholders of Majuperak Holdings Bhd, a Perak state government-controlled firm, have unanimously voted at the company’s AGM to cut its directors’ fees by half.

They have also voted not to proceed with the proposed payment of benefits totalling RM150,000 to the non-executive directors.

The loss-making company, which is now under the control of a new government, also saw the exit of four directors, who were said to be linked to the previous administration.

The four directors – Tan Sri Megat Najmuddin Megat Khas, Datuk Aminuddin Md Desa, Datuk Mohd Azhar Jamaluddin and Mustapha Mohamed – had opted to withdraw from seeking re-election at the AGM.

Aminuddin, 56, last month had resigned from his position as the chief executive officer of Perak Corp Bhd.

The reduction in directors’ fees and changes to the board is part of the overall measures adopted by the new state government to cut cost. The initiatives are part of a nation-wide exercise by Pakatan Harapan to scrutinise the remuneration of officials and directors of government-linked companies (GLCs) owned by federal agencies as well as the states.

Perak was previously under Umno’s administration.

Meanwhile, Perak Mentri Besar Ahmad Faizal Azumu was quoted as saying that the state government had sacked seven executive officers of a GLC for excessive spending.

Without naming the company, Ahmad Faizal said the dismissal would save the state RM150,000 a month.

“What I saw in the company was a bit ridiculous. It is not making much profit but the overhead is high and it has many officers who are not needed,” he was quoted as saying.

Back to Majuperak, at the meeting yesterday, shareholders unanimously agreed for the directors’ annual fees to be reduced to RM198,000 from RM386,250 for the financial year ended Dec 31, 2017.

Majuperak said in an announcement to Bursa Malaysia that it had received a letter from its major shareholder Perbadanan Kemajuan Negeri Perak to table a resolution to cut down on the directors’ fees.

The resolution had overwhelming support in the meeting by shareholders yesterday.

Perbadanan Kemajuan Negeri Perak owns a 55.12% stake in Majuperak.

Additionally, shareholders also voted against the payment of benefits to non-executive directors amounting to RM150,000 from June 26, 2018 until the next annual general meeting of Majuperak.

For the first quarter ended March 31, Majuperak’s losses widened to RM1.42mil from RM1.09mil a year earlier. The property developer posted a lower revenue for the quarter, falling 41% to RM1.25mil from RM2.12mil previously.

The company had bank borrowings of RM10.9mil as at March 31 and a cash position of RM2.9mil.