MSWG Weekly Newsletter 06 May 2017
06 May 2017
MSWG’S QUICK TAKE ON ONGOING CORPORATE DEVELOPMENTS
UNITED PLANTATIONS BERHAD (“UPB”)
The Audit Committee Report in the 2016 Annual Report of UPB reported an issue highlighted by the authorities on an appearance of potential conflict of interest in the trading of derivatives in that an Executive Director who has been authorised to trade on behalf of the company in Crude Palm Oil (CPO) Futures also in his personal capacity entered into trades on such derivatives.
[Source: UPB’s Annual Report 2016]
MSWG’S COMMENTS:
Over the years, UPB had been regarded as a good company in the eyes of the shareholders for consistent delivery of decent dividends to the shareholders and double digit ‘Return on Equity’ as well as good share price performance. We are encouraged to note that the shareholders are showing concern on the corporate governance conduct of the Board besides the financial performance of the Company.