BN Penang state chairman Teng Chang Yeow schooled its state chief minister Lim Guan Eng that the Companies Act 1965 clearly defines that a shareholding of more than 5% shares in a company is called substantial shareholder.
Teng was reflecting on the 49% share owned by Penang Development Corporation (PDC) in Tropical Island Resort Sdn Bhd (TIRSB) out rightly puts PDC as a substantial shareholder.
“PDC has representations on the Board of Directors of TIRSB. As members on the Board of Directors, PDC has say in the company.
“It is contrary to Chief Minister’s claim that PDC has no say! This is provided for in the Companies Act 1965.
“UDA may have the majority of Board of Directors members but UDA cannot decide the price of the share PDC intends to sell.
“Common sense will tell us that whatever you own and if you intend to sell, the negotiation is between you and the buyer.
“No one else can decide for you the price you are asking . It is alarming that Guan Eng has such a shallow understanding of corporate rights,” highlights Teng via a press statement.
Teng also pointed out that Guang Eng contradicts himself on his own statement yesterday that ‘as minority shareholder in a private limited company (Sdn. Bhd), you have no say’.
Guan Eng went on to say that ‘We have rejected several proposals from UDA in the past but finally agreed with this sale’
If PDC, in the Chief Minister very own words, is a minority and has no say, how could PDC reject several proposals made by UDA in the past! Is this not lying? ponders Teng.
“PDC has in its statement stated that the sale of the share to Ideal was done this year.
“Ideal is a listed company on Bursa Kuala Lumpur and we could not find the announcement of the transaction in Ideal’s website nor in Bursa Kuala Lumpur’s website.
“We wonder why such a simple question as to the actual date of the transaction was done, could not be immediately make available? The answer is CAT is dead and buried!” added Teng.