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Major Shareholder’s Abstention after Voicing Support for Resolutions
The abstention of Solution Group Bhd’s group managing director (GMD) and major shareholder, Lim Yong Hew from voting on resolutions pertaining to asset acquisition and business diversification has certainly caught its shareholders by surprise.
In an extraordinary general meeting (EGM) held on 21 December 2019, shareholders shot down three resolutions pertaining to asset acquisition and business diversification put forth by the Board.
The three resolutions were namely, proposed acquisition of a partially completed plant for RM18 million, proposed acquisition of machinery and equipment for RM7 million and a proposal to diversify into the production of lactic acid (collectively referred to as “Proposals”). The acquisition of the plant, machinery and equipment for RM25 million are earmarked for the production of lactic acid.