Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 23): YFG Bhd's board of directors issued a statement today to "dispel any notion that they have not acted diligently or with sufficient urgency to deal with the issues affecting the company".

In a written representation to all of the electrical and mechanical engineering firm's shareholders, the board said it has taken necessary steps and measures to ensure YFG meets its deadlines in submitting a regularisation plan to lift its Practice Note 17 (PN17) status.

"We are confident the regularisation plan will not only be approved by Bursa Malaysia but also that its implementation will result in the company being returned to a better and more improved financial position, with an eye on the long-term profitability and success of the company," the statement read.

On Aug 24, YFG's single largest shareholder, General Technology Sdn Bhd (GTech), issued a notice to the company to convene an extraordinary general meeting (EGM) to seek shareholders' approval for the removal of the entire board of directors for the reason "that they are not doing enough and with appropriate urgency to prevent the delisting of the group".

YFG is required to submit its regularisation plan in relation to its PN17 status not later than Wednesday (Sept 21), and the group had submitted the plan to Bursa Malaysia on Tuesday (Sept 20).

Today, the board said the EGM, which will be convened by next Thursday (Sept 29), would "materially and severely" affect YFG's ability to pursue its regularisation plan that is already "at the crucial final stages of approval and implementation".

The board of directors insisted they have performed their functions and duties "responsibly and diligently", and should be given the opportunity to see the difficult phase in the company's recent history through to ensure the shareholders' interests are "adequately addressed and protected".

However, in a filing with Bursa Malaysia today, YFG said GTech had decided to withdraw one of the resolutions it put forth, i.e. the resolution to remove Tan Gem Suan as director of the company. Tan has been YFG's independent and non-executive director since Feb 25.

GTech said the withdrawal was because YFG had successfully obtained an extension of a restraining order on its creditors, and that Tan was approved as nominated by a majority of creditors in the company's application to act as a director, pursuant to Section 176(10A)d of the Companies Act that deals with the power of the court to restrain proceedings.

The restraining order was applied as part of YFG's intention to propose a scheme of arrangement to regularise its affairs.

 

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