No go for Xian Leng’s par value reduction

PETALING JAYA: Ornamental fish breeder Xian Leng Holdings Bhd’s special resolutions for a proposed par value reduction and proposed amendment to improve the financial position of the group were not carried at its EGM yesterday.
Trading in the company’s shares was halted from 3.44 pm yesterday following the meeting, and will be resumed from 9am today.
At the EGM, all the resolutions were voted by way of poll and the voting results showed that 58.05% voted for the proposed par value reduction while 41.95% voted against it. In addition, 55.40% voted for the proposed amendment, while 44.60% voted against it.
The company had proposed reduce its share capital by cancelling 80 sen of the par value of every existing share, which will see the par value of the existing shares reduced from RM1 each to 20 sen each.
The board had identified the proposed par value reduction as the first step of its rationalisation plan, whereby the exercise will enable the company to rationalise its statement of financial position by eliminating its accumulated losses.
For the financial year ended Jan 31, 2015 (FY15), Xian Leng registered a net profit of RM503,000 comparing with its net loss of RM1.9 million in FY14.
Xian Leng’s share was last done at 44.5 sen, up 1.5 sen or 3.49%.