SMI courts more CG controversy with re-appt of director who was ‘rejected' a month ago

Focus Malaysia

5 days ago

PROPERTY developer South Malaysia Industries Bhd (SMI) which is facing backlash over shareholder rights and corporate governance (CG) practices is now embroiled in a controversy surrounding its e re-appointment of Latifah Abdul Latiff as the company's independent non-executive director (INED).
This follows the company's 53rd annual general meeting (AGM) on June 25 whereby SMI had an unprecedented all four resolutions proposed by its current board of directors 'rejected and voted down', including that of Latifah's re-election, prompting her resignation on the same day.
According to a Bursa Malaysia filing dated July 15, the 64-year-old former Bank Pembangunan Malaysia Bhd senior vice president/business banking head was appointed to her old INED role which she failed to seek re-election effective that day.
However, it was understood that proxies representing three major shareholders – Target 1 Sdn Bhd, Honsin Apparel Sdn Bhd and HIQ Media (M) Sdn Bhd – who collectively hold 50.05% of SMI's shares were unhappy with Latifah's re-appointment.
After all, the trio had been instrumental in ensuring a decisive rejection of Latifah who had offered herself for re-election during last month's SMI AGM.
For the record, the other three rejected resolutions included:
The re-appointment of Messrs UHY Malaysia PLT as auditors of SMI until the conclusion of its next AGM;
Approving directors' fees and benefits of up to RM350,000 to non-executive directors of the company and subsidiaries; and
Authority to allot and issue shares in general pursuant to Sections 75 and 76 of the Companies Act 2016.
Similar trend last year
'This incident mirrors a similar situation earlier on March 27, 2024 during which shareholders had rejected the re-election of executive director Leow Thang Fong who also resigned on the same day as the AGM following this rejection,' a market observer told FocusM on condition of anonymity.
'Yet, in a highly questionable move, the board re-appointed Leow as CEO barely a month later on May 1, 2024.'
The market observer contended that Latifah's and Leow's re-appointments have raised serious questions about SMI's adherence to the fundamental CG principles and the board's respect for shareholder decisions.
'Such practices could significantly undermine shareholder confidence and damage the integrity of Malaysia's capital market,' he justified.
'Given the importance of maintaining strong CG standards and protecting shareholder interests, we believe that a scrutiny by the relevant market regulators – namely, Bursa Malaysia and the Securities Commission Malaysia (SC) – into these developments is warranted.'
At the close of today's (July 17) market trading, SMI was unchanged at 31 sen with no transaction done while its market capitalisation stood at RM65 mil. – July 17, 2025