Bright Packaging questions move

 PETALING JAYA: The board of Bright Packaging Industry Bhd is still questioning the move by four of its shareholders that who collectively own 31.19% in the aluminium foil packager to replace some of its experienced directors as it has not received any comments from the requisitionists since they announced the date for an extraordinary general meeting (EGM).

The company announced an EGM to be held on Feb 21 to remove managing director Wong See Yaw, executive director Yap Kok Eng, non-independent non-executive director Wong Siew Yoong and independent non-executive director Yeap Cheng Chuan as well as any new directors who might be appointed from the date of the requisition to the date of the EGM.

Among the questions raised by the board in a statement yesterday were the reasons for the removal of these directors, is the proposal to remove them in the best interest of the company and who will helm the company if the proposed motion was passed at the forthcoming EGM.

“At the meeting held with the Minority Shareholders Watchdog Group (MSWG) this week, it was understood that MSWG was also interested to reasons behind the proposed motion.

“The board is appealing to all shareholders to vote against the proposed resolutions to ensure there is continuity in the present management who has been delivering sterling results,” said the statement.

On another matter, Bright Packaging has decided to pay out all of its distributable profits as dividend made for the next five financial years to reward shareholders.

It also announced its net profit for the first quarter ended Nov 30 climbed to RM1.7mil from RM663,000 a year ago despite a lower turnover

It registered a lower revenue of RM11.4mil compared with RM13.7mil in the same quarter of the last financial year due to reduced orders from a local tobacco manufacturer currently undergoing a major restructuring and relocation of operation exercise while the higher margin was attributed to lower costs of material and improved operational efficiency.

“Barring unforeseen circumstances and in light of the on-going boardroom tussle or a potential change of entire board, the directors are unable to comment on the future performance,” it said in a filing with Bursa Malaysia yesterday. - the star online