Minority shareholders’ request to table resolutions at AGM not in order: Great Eastern

The current request by a minority shareholder of Great Eastern Holdings (GEH) to desk resolutions at its upcoming annual normal assembly (AGM) “does not satisfy all of the requirements” for a requisition to be moved, the insurer stated on Wednesday (Mar 6).

The Business Times reported on Mar 1 {that a} group of minority shareholders of GEH, led by impartial investor Ong Chin Woo, had sought to desk three resolutions on the upcoming AGM: to withhold administrators’ charges, to alter the share choice schemes of staff, and to nominate an impartial monetary adviser to discover choices to reinforce shareholders’ worth.

In its regulatory submitting on Wednesday, GEH stated it responded to “a minority shareholder, acting on behalf of a group of minority shareholders” after looking for authorized recommendation.

It highlighted as properly that its share value will depend on “many factors”, because it addressed the criticisms that the counter had not saved tempo with the rise in its internet asset worth (NAV) and embedded worth.

GEH stated embedded worth is an fairness valuation measure utilized in insurance coverage firms, based mostly on estimates of current worth of projected future income plus the corporate’s NAV.

“GEH’s management is aware that while GEH shares currently trade above its NAV, they trade below its estimated (embedded value) as at end-2023,” stated the insurance coverage arm of OCBC.

The group of minority shareholders’ issues revolve across the “depressed” share value of the insurer and continued valuation decline during the last decade, regardless of its “strong financial position”.

Ong beforehand advised BT that he had introduced up these points to GEH’s board a number of instances, and wished to align the pursuits of the board, the executives and the shareholders.

Shares of GEH closed at S$18.20, 0.6 per cent greater, on Wednesday, earlier than the submitting was printed.

Source: www.businesstimes.com.sg”