Scan Associates shareholders reject directors’ fees

PETALING JAYA: Shareholders of Scan Associates Bhd, which are embroiled in a boardroom tussle, rejected the payment of directors’ fees amounting RM156,000 for the financial year ended June 30, 2015 (FY15) at its adjourned AGM last Friday.
Other resolutions were passed, including the election of the company’s co-founder and former CEO Datuk Norbik Bashah Idris.
Last Thursday, the Court of Appeal dismissed Scan Associates’ appeal against the nominations of Norbik and former director Yeoh Eng Kong on the board.
The nominations of Siti Sarah Zainal Abidin, former CFO Nurul Huda Zaharol Natrar and Nor Ramzani Abdul Rahim, however, were overruled by the court.
It remains to be seen whether the trio will try to seek representation on the board again, through an EGM.
With Norbik making a return to the company, executive director Mak Siew Wei opined that any disagreements between the board members should be put aside.
“I do not have an opinion with whatever that was decided today. More importantly for me, is the welfare of the company. All of the directors should have the same agenda to make sure that the company stays afloat,” he told a press conference after the company’s AGM.
Scan Asscociates was supposed to have its AGM last month, but due to a High Court order, which gave the green light to Yeoh to seek representation on the board, the AGM was adjourned till last Friday.
On the director’s fees, while shareholders claimed that it is 21.62% higher than the RM128,267 in FY13, Mak explained that it is due to a longer period of 18 months for FY15 arising from a financial year change from December to June. Its FY15 is from January 2014 to June 2015.
“Technically, it is 18 months, not just 12 months. To put it into perspective, it’s not that the company is not doing well and the directors tried to increase their salaries,” he said.
“The directors won’t get their salaries although they have been the directors for the past 18 months,” he added.
Scan Associates, a guidance note 3 (GN3) company, is to submit its restructuring plans by May 18.
“We’re working hard together with our adviser Mercury Securities. When things are ready, we’ll make an announcement,” he said.
It posted a net loss of RM19.12 million for 18 months ended June 30, 2015, mainly due to the difficult business environment, which led to impairments in development expenditure and receivables totalling RM13.8 million.
For the first quarter ended Sept 30, 2015, it swung into the red registering a net loss of RM379,000 against a net profit of RM47,000 in the previous corresponding period.
Operationally, Mak said the company has made a small profit and he foresees an upside in its business prospects.
“We’re still getting some jobs here and there. It is not that we’re not having new jobs at all since June, when the ex-CEO resigned, he said.
Mak also said the company’s cost cutting and operation streamlining efforts have started to pay off, with monthly fixed costs declining to below RM300,000 from over RM800,000 in June.