KUALA LUMPUR (Nov 29): Perisai Petroleum Teknologi Bhd's shareholders declined to give a mandate for the company's related party transactions, in which its managing director Datuk Zainol Izzet and controlling shareholder Ezra Holdings Ltd are involved, at the annual general meeting (AGM) this morning.

The Practice Note 17 (PN17) company announced to Bursa Malaysia this afternoon that at today's AGM all the resolutions were carried, except for Ordinary Resolution 6 on the Proposed Renewal of Shareholders' Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature.

"The board of Perisai would like to inform that the board will seek legal advice on the above and further announcement will be made to Bursa Malaysia in due course," read the filing.

The said resolution refers to the proposed renewal of shareholders' mandate for recurrent related party transactions of a revenue or trading nature, which was set out in an announcement on Oct 26.

This includes Intan Offshore Group's monthly receipt of income of RM4.1 million for bareboat charter of vessels to Emas Offshore (M) Sdn Bhd.

Intan Offshore is 51%-owned by Perisai, while Emas Offshore is linked to Perisai's largest shareholder Ezra Holdings Ltd, which owns 22.32% stake in the group through Emas Offshore Ltd and HCM Logistics Ltd as at end-September.

In addition to that, Perisai will also be paying agency fees amounting RM540,000 per month in aggregate to three agents, namely Larizz Petroleum Services Sdn Bhd (LPS), Larizz Energy Services Sdn Bhd (LES), and Perisai Offshore Sdn Bhd (POSB).

LPS is a 40% associate company of Perisai, while LES and POSB are 51%-owned subsidiaries of Perisai. Zainol owns all the remaining shares in the agents.

Perisai had earlier explained the agency fee as the consideration for services rendered by the related party which includes the use of its Petronas licence, render support, business development, market intelligence and contract management.

Perisai's management declined to speak to theedgemarkets.com after its AGM.

As at 3.01pm, the stock was unchanged at 2.5 sen with a total of 250,000 shares transacted.