KUALA LUMPUR (May 4): 1Malaysia Development Bhd's (1MDB) current board of directors will resign, effective May 31.

In a statement today, the Minister of Finance Inc (MoF Inc), which is the sole shareholder of the troubled strategic development company, said it has accepted the resignation of the current 1MDB board members and will appoint new members in due course to reflect the limited business profile of the fund.

MoF Inc said the changes follow recommendations made in the Public Accounts Committee (PAC) report on 1MDB, which included the resignation of the current board of directors.

"After a detailed study and due deliberation, MoF Inc has agreed to fully implement the various recommendations contained in the PAC report on 1MDB," MoF Inc said.

According to 1MDB's website, its board of directors comprises chairman Tan Sri Lodin Wok Kamaruddin, president Arul Kanda Kandasamy, former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi, Tan Sri Ismee Ismail, Tan Sri Ong Gim Huat and Ashvin J. Valiram.

The current board members had on April 7 offered their resignation to MoF Inc.

MoF Inc said nevertheless, Arul Kanda will remain in his current role as president of 1MDB until further notice. "He will continue to focus on his specific mandate to implement the rationalisation plan, which will include resolution of the recent contractual dispute with the International Petroleum Investment Co (IPIC)."

MoF Inc also announced that the board of advisors of 1MDB, which is chaired by Prime Minister Datuk Seri Najib Razak, will be dissolved under the changes to the fund's governance.

Accordingly, MoF Inc said the Article 117 in the 1MDB Memorandum and Articles of Association will be removed and all references of "prime minister" will be changed to "minister of finance".

The ownership of Bandar Malaysia Sdn Bhd, TRX City Sdn Bhd, Air Itam lands and Pulau Indah land will also be transferred from 1MDB to MoF Inc.