PETALING JAYA: FGV Holdings Bhd’s directors’ fees should commensurate with the current state of affairs at the plantation giant as well as its future prospects, said the Armed Forces Fund Board (LTAT).
In a statement clarifying its decision to vote against resolutions pertaining to the remuneration of FGV’s directors’ fees for the financial year ended Dec 31, 2018 (FY18), a spokesman said that the decision was not taken lightly and was reached following considerable discussions and deliberation.
“The decision was premised on the fact that LTAT strongly believes in shareholder activism, particularly to protect the interests of our contributors, members of the armed forces. Given prevailing economic conditions and FGV’s current financial standing, we are of the view that director’s remuneration should commensurate with the current state of affairs at FGV and its prospects ahead.
“We trust the current board at FGV will keep LTAT apprised of its plans to improve the prospects of FGV,” said the spokesman.
On Tuesday, some 64.4% of the shareholders at FGV’s AGM led by Federal Land Development Authority, Koperasi Permodalan Felda and LTAT voted against resolutions relating to its directors’ remuneration.
The resolutions include directors’ fees amounting to RM2.55 million in respect of FY18; the payment of a portion of directors’ fees payable to the non-executive directors up to RM1.18 million from June 26, 2019 until the next AGM to be held in 2020; the payment of benefits payable from June 26 until the next AGM to be held in 2020.
The resolution to grant authority to the directors to allot and issue shares pursuant to Section 75 of the Companies Act, 2016 was also rejected.
