KUALA LUMPUR (July 8): PRG Holdings Bhd's (KL:PRG) second-largest shareholder Datuk Sheah Kok Fah, together with shareholders holding a combined stake of more than 10% in the company, have called for an extraordinary general meeting (EGM) to remove group managing director Andrew Chan Lim-Fai and revamp the board.

The other requisitioning shareholders are Sy Dioceldo Sy, Cheah Eng Chuan and Datuk James Jr Lee Weng Kei. The group is proposing the appointment of Sheah, Datuk Richard George Azlan Abas and Datuk Dr Teo Tong Kooi as directors.

In a Bursa Malaysia filing on Wednesday, PRG said it had received the written requisition from the shareholders, who are also seeking the removal of any directors appointed to fill casual vacancies between the date of the requisition and the proposed EGM, except for the three nominees.

In addition, the shareholders are proposing directors' fees and allowances of up to RM400,000 for non-executive directors from the date of the EGM until the company's next annual general meeting.

Sheah, who owns an 8.14% stake in PRG, had previously sought to table a resolution to remove Chan at the company's annual general meeting on June 25. However, the board rejected the proposal ahead of the AGM, citing non-compliance with the legal requirements governing shareholder resolutions.

Sheah told The Edge Malaysia (June 8-14 edition) that his push to remove Chan stemmed from concerns over corporate governance issues, particularly an undisclosed related-party transaction involving a proposed debt settlement between PRG and Premier De Muara Sdn Bhd (PDM), a property developer linked to PRG's largest shareholder, Datuk Ng Yan Cheng.

Under the proposed settlement, RM37.17 million owed by PDM to PRG for construction works carried out by its subsidiary, Premier Construction International Sdn Bhd, for the Picasso Residence project in Jalan Jelatek, Kuala Lumpur, would be partially settled.

Chan, who has served as group managing director since March 26, 2024, is the son-in-law of Ng, who holds a 16.39% stake in the company.

Apart from this boardroom tussle, there has recently been a separate dispute between PRG and Ng.

On July 1, PRG said it had received an RM21.22 million statutory demand from Ng for advances previously extended as working capital and recorded as shareholder loans. The demand came days after PCI sought RM64.24 million in outstanding payments from PDM.

Ng has given PRG 21 days to settle the amount, failing which he may initiate winding-up proceedings against the company.

Shares of PRG closed down half a sen or 5.26% at nine sen on Wednesday, giving it a market capitalisation of RM44.13 million.

Read also:
PRG AGM votes down three resolutions; shareholder pushes for EGM to reshape board
PRG faces RM21.2m demand from largest shareholder as PDM payment dispute escalates