New board of directors takes over at YFG
PETALING JAYA: YFG Bhd, a Practice Note 17 company, yesterday saw the removal of six directors and the appointment of new faces to the board with immediate effect, after a majority of shareholders voted for a change in a bid to expedite efforts to revitalise the company.
The extraordinary general meeting was requisitioned by substantial shareholder General Technology Sdn Bhd (GTech).
Newly appointed director Ting Keng Fui said the newly minted board plans to meet with regulator Bursa Malaysia Securities as its first order of the day to “tweak a little” a regularisation plan that was submitted by the old board.
On Aug 29, YFG announced its proposed regularisation plan that includes a private placement and a rights issue that will raise RM35.33 million. YFG slipped into PN17 status (companies that are in financial distress) in September last year.
“As a distressed company, YFG needs direction in terms of its financial standing and we will address that. There’s also the scheme of arrangement with creditors, which have to be looked at, as well as addressing (issues of) employees and management. We intend to take it forward and make corrective actions for the future,” Ting said.
The new directors include Ting, Leong Ngai Seng, Noel Joseph Ha Thien Sen, Lim Yoke Cheng, Teh Yee Joo and Ong Kenn Tat. Leong is Acoustech Bhd executive director, while Ha is the brother-in-law of GTech director Jeremy Lim Chin Keong. Yoke Cheng is Chin Keong’s sister-in-law.
Ting said YFG will focus on its electrical and mechanical engineering business in the near term, which is the strength of the company and will look at proposals on the table. He said this included searching for white knights to put YFG on a better financial standing.
“There are potentials (white knights), otherwise we will not be able to move forward and we will not be that confident. There are white knights available. We will move that forward in a faster pace,” said Ting.
Chin Keong thanked the old board for its contribution and efforts in submitting the regularisation plan, recognising the difficulty in dealing with the PN17 status.
“As a shareholder, I won’t say it’s a victory on our part (overturning the entire board). We’re doing it for the sake of the company. As a major shareholder, I pass the baton to them and place the responsibility on the new directors to receive new proposals and ideas to turn around the company,” said Chin Keong.
Those who were removed as directors include Dr Roslan A Ghaffar, Lim Chong Ling, Soo Hon Chong, Rezal Zain Abdul Rahid, Ab Gani Haron, Chee Hor Wooi.
Chong Ling, who was YFG managing director, said he respected the outcome of the EGM, as a shareholders’ prerogative.
“Now I become an investor (shareholder) so I will see how the company progresses. If they (new board) can do it better than us, I will still keep my investments,” he said.
On advice for the new board, Chong Ling said it needs to be practical and fully understand what it is doing.
“Understand that this is an engineering company doing contracts, it’s a challenging business, they (new board) should be prudent in the course of managing (the company).
“They have to look at the current employees who have stayed with the company even though the company had been affected by the PN17 status,” said Chong Ling, who plans to take a break from work and think of his next move, adding that he will look for engineering-related roles.