Hoe Leong on reappointment of director after failed re-election

The board of Hoe Leong Corp last Saturday clarified that the reappointment of Mr Joseph Liew Yoke Pheng as executive director on June 26 was "in the interest of the company and shareholders", given that the company is currently undergoing a restructuring process.

Mr Liew was nominated by the company's financial creditors to be appointed as chief executive last October, and board chairman last November, for the purpose of managing the financial and corporate restructuring of the mainboard-listed heavy-equipment trader.

On June 26, he was reappointed as an executive director - just two days after his re-election was voted down at the company's annual general meeting.

The reappointment came after taking into account the submission of two proxy forms supporting his re-election from two substantial shareholders - United Overseas Bank and DBS Bank - which had arrived past the submission deadline on June 23.

UOB and DBS became the biggest shareholders in the company - with a direct interest of 28.66 per cent and 16.32 per cent respectively - following a debt-for-equity swap as part of the restructuring.

Last Saturday, the board said: "As this restructuring exercise is still ongoing, the board believes that the continued support of the company's financial creditors is dependent on Mr Liew continuing in his role as chairman and CEO of the company.

"Accordingly, the board is of the view that the reappointment of Mr Liew as (executive director) on June 26, 2020, is in the interest of the company and shareholders."

The Business Times understands that the financial creditors wield some say in the decision, given their power to foreclose the company if they do not have confidence in the company's management team.

The Business Times also understands that the company will hold an extraordinary general meeting to, among other things, allow shareholders to ratify Mr Liew's reappointment.

THE BUSINESS TIMES

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A version of this article appeared in the print edition of The Straits Times on July 06, 2020, with the headline Hoe Leong on reappointment of director after failed re-election. Subscribe