Shareholders query Silver Bird on viability at AGM

SHAH ALAM: Silver Bird Group Bhd
had a tense AGM on Friday, its second since financial irregularities
worth millions of ringgit were discovered last year, with shareholders
questioning whether it would be wise to continue supporting the company,
the status of its legal suits, and even the integrity of the board.
Chairman Datuk Dr Gan Khuan Poh,
however, expressed confidence that the business would not go under,
telling shareholders: "We have survived for the past 15 months. The
market is there. We just have to go through a reorganisation."
He added that a study had been carried out to ascertain that the business was still viable, and a turnaround possible.
The meeting also saw a display of shareholder activism.
One
participant suggested to board members present that Silver Bird, which
had lost a number of key executives over the past year, enlist
representatives from its substantial shareholders Lembaga Tabung Haji
and Koperasi Permodalan Felda Malaysia Bhd for help on an operational level.
"The internal controls have to be tightened," he said.
A
company official explained that Silver Bird is in the midst of seeking
Bursa Malaysia's approval to regularise its PN17 status, with plans to
convert the debt owed to creditors into equity.
But since the company would still be cash flow deficient, a rights issue is likely to be called, he said.
Loss
making Silver Bird has been embroiled in controversy after it failed to
deliver its annual audited accounts for 2011 due to concerns raised by
its then auditor, leading to the dismissal of its managing director, an
executive director and general manager, as well as RM125mil in legal
suits against multiple parties.