MSWG Weekly Newsletter 24 May 2024 (English)

MSWG Weekly Newsletter 24 May 2024 

P.I.E Industrial disclosure of order wins draws scrutiny

Recent developments in P.I.E Industrial (PIE) raised several pertinent questions about its disclosure of material information.

Notably, its share prices surged by 47% within the three days preceding its announcement of major order wins on 19 April 2024. It was later found that PIE had already secured the orders on 31 March 2024 but only announced it two weeks later. 

Additionally, its disclosure of contract values also drew scrutiny. Based on the timeline, PIE disclosed the price-sensitive information to the press before it was officially announced to the Stock Exchange. 

MSWG Weekly Newsletter 17 May 2024 (English)

On 1 May, South Malaysia Industries (SMI) announced the appointment of Leow Thang Fong as the CEO of the Company, who was ousted as an executive director at SMI’s 52nd AGM on 27 March 2024.

Following what has transpired at SMI, MSWG urges PLCs to respect their shareholders’ voices, especially since decisions are made through a transparent voting process with results being validated by an independent scrutineer.

While it is legally permissible for a board to appoint individuals it deems fit to run the business, it is ethically questionable to appoint someone who was recently ousted to hold a key post

MSWG Weekly Newsletter 10 May 2024 (English)

Navigating the role of chairman to safeguard corporate governance

A board chairman is the custodian of governance, plays a pivotal role in shaping the board's trajectory and upholding the principles of integrity, transparency, and accountability. However, board chairmen may sometimes fall short of fulfilling their duties in the forms of communication lapses, suppression of shareholders’ rights and going overboard in performing their duties.

The repercussions of these issues extend beyond the boardroom. It affects trust among stakeholders, leads to reputational damage, and diminishes confidence in the organisation's leadership.