China Ouhua's external auditor withdraws its reappointment at upcoming AGM

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KUALA LUMPUR (June 19): China Ouhua Winery Holdings Ltd's external auditor Messrs Helmi Talib & Co (HTC) has decided to withdraw its consent for its reappointment as auditors of the company, as it does not satisfy the criteria for recognition of foreign auditors which requires a foreign audit firm to be an internationally-affiliated network firm.

In a filing with Bursa Malaysia today, China Ouhua said it has received the notice of withdrawal of consent for reappointment from HTC.

Following this, the company will withdraw Resolution 4 under agenda item 5 in relation to the reappointment of HTC, as stated in the notice of its upcoming annual general meeting (AGM) scheduled to be held on Friday (June 23).

"With the withdrawal of Resolution 4, this resolution would not be tabled for consideration by the shareholders at the AGM," China Ouhua added.

Under Bursa Malaysia's Main Market listing requirements, a foreign issuer with a primary listing must appoint an external auditor from an international accounting firm or an accounting firm with international affiliation.

It must also ensure the applied auditing standards are in accordance with the approved auditing standards applied in Malaysia or the International Standards on Auditing.

China Ouhua noted the terms of office of HTC, as the auditors of the company will expire at the conclusion of the AGM. "(As such), the board will take the necessary steps to convene an extraordinary general meeting to appoint an auditor in due course."

China Ouhua shares closed 0.5 sen or 14.29% lower at 3 sen today, with 500,000 shares done, bringing its market capitalisation to RM20.04 million.