MAGNI-TECH INDUSTRIES BHD | Retention of TAN Poh Heng as Independent Director

Status
AGM passed
AGM date
Proposal number
7
Resolution details
Company ticker
MAGNI:KLS
Submitted by
Global Delta Capital
Resolution ask
Amend board structure
ESG theme
  • Governance
ESG sub-theme
  • Independent board
Type of vote
Director vote
Filer type
Management
Company sector
Consumer Discretionary
Company HQ country
Malaysia
Resolved clause
Director TAN Poh Heng has served at least nine years as an independent director on the board. The Malaysia Code on Corporate Governance 2021 (the '2021 Code') recommends that the tenure of an independent director be limited to nine years, after which time they be considered non-independent.
Whereas clause
As per the 2021 Code, where an independent director has served on the board for more than nine years, a two-tier voting process is to take place. In this case, large shareholders of a company will cast their vote to retain the director as an independent director. Shareholders other than larger shareholders will do the same. The majority of both shareholder groups must vote in favour for the director to be retained as an independent director.

As per the Bursa Malaysia Securities Berhad Listing Requirements (the 'Listing Requirements'), independent directors who have served for more than a cumulative tenure of 12 years in a listed issuer and its group of companies will be required to be either step down from their position or be re-designated as a non-independent director by June 1, 2023.
Supporting statement
It is vital for companies to retain talent in order to protect and enhance shareholder value. However, where an independent director serves on a board for more than 9 consecutive years, the long-term relationship may weaken the
independence of a director's thoughts and actions. In this case, the periodic rotation of directors, particularly independent directors, is essential to bringing fresh ideas and ensuring long-term accountability in board and company oversight.

How other organisations have declared their voting intentions

Organisation nameDeclared voting intentionsRationale
Global Delta CapitalAgainstNot in shareholders' best interest

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