By KINIBIZ
Can the chairman of a public-listed company rightly hold shares in another public-listed company — a direct rival at that?
Common sense says no. In fact the law also says this should not be. But this scenario is exactly what has unfolded with regards to SP Setia chairman Zaki Azmi.
Zaki, a former chief justice, holds 19.12 million shares in Eco World Development Group as of Jan 22, according to the latter’s latest annual report. On that date this corresponded to 3.77% of Eco World’s outstanding shares base, making him the third largest shareholder, and was worth RM37.2 million at Friday’s closing price of RM1.95 per share.
And it was not just Zaki. Eco World’s latest annual report also reveals that SP Setia’s two foremost management executive — acting CEO Khor Chap Jen and acting COO Wong Tuck Wai — holding 2.29 million and 1.53 million shares respectively as of Jan 22 this year. The shareholdings come to 0.45% and 0.3% respectively of the outstanding shares base at that point.
This raises pressing questions of conflict. Foremost is why Zaki and company are apparently turning their backs on the obligation for company directors to actively avoid positions of conflicting interests under Section 132 of the Companies Act, which stipulates that directors must use “reasonable diligence” in the discharge of his duties.
Worse, this rubs salt onto SP Setia’s festering wounds after a massive talent drain to Eco World, which is now counting a legion of former SP Setia men — all the way up to the top — as among its directors, top executives and most of its workforce.
Will the trail of conflicts ever end? And will someone actually do something about this? Eyes on you, Permodalan Nasional Bhd, oh you who holds just below 70% of SP Setia shares.
In any case here are some of our best news, analyses and commentaries this week in case you missed them:
Pick 1 — Concern over mounting global debt. The global financial crisis is nearly seven years past but a recent report unveils a new problem: mounting global debt is outpacing world GDP growth. KiniBiz examines the issue and its implications in a three-part series here, here and here.
Pick 2 — Comparing Lee Kuan Yew and Mahathir. With the recent passing of the architect of modern Singapore, Lee Kuan Yew, KiniBiz revisits a past comparison of Lee and Malaysia’s former prime minister Mahathir Mohamad and the eventual impact on the respective countries. Read here.
Pick 3 — Why we still need BNM’s macroprudential measures. Household debt growth levels are slowing and some are calling for financing curbs to be eased. But Bank Negara Malaysia think they are still more than necessary to keep household debt in check — rightly so, argues our resident cat here.
Pick 4 — Legislative pancake scares for taxi drivers. Though the confusion over the fare revision of taxis has been resolved in favour of the taxi drivers, our resident cat still feels confusion as well as helpless mirth and shock that such a thing can happen in the first place. Read further on that here.
Pick 5 — Time to stash cash under our pillows? The upcoming goods and services tax (or GST) has our resident cat’s tail tangled in knots. First, she was informed that GST would be charged on her credit card annual fee. Now it is set in stone that banks will also charge GST. Is this the end, she wonders here.
Pick 6 — Should royalty be involved in business? The Sultan of Johor defends his multibillion business deals and claims that he needs to earn a living like everybody else. Former prime minister Mahathir Mohamad previously said otherwise. Who is right in this delicate matter, ponders our resident cat here.
Pick 7 — Mokhzani downplays Opcom CEO-ship. Newly minted Opcom Holdings chief executive officer Mokhzani Mahathir has downplayed the implications from his new position even as investor interest saw the counter hit a 10-year high earlier this week. Read more here.
Pick 8 — Viral new price list for cigs fake, says cigarette-maker. A price list ostensibly showing new prices for British American Tobacco brands beginning April 1 is false, said British American Tobacco (Malaysia) Bhd or BAT this week, adding it had lodged a police report on the matter. Read further here.
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– by Khairie Hisyam Aliman, News Editor
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