KUALA LUMPUR (March 27): Computer Forms (M) Bhd said its shareholders rejected a motion to re-elect executive director (ED) Pang Nan Yew at the company’s annual general meeting (AGM) on Wednesday.

Accordingly, Pang is deemed to have retired from the group’s board, the printing and packaging solutions provider said in a stock exchange filing.

Seventy shareholders voted against the motion, versus 48 who supported the re-election of Pang as a director.

Pang has over 31 years of experience in the manufacturing industry, having spent 25 years in Sharp Manufacturing Corp (M) Sdn Bhd (SMC), with his last position being deputy general manager.

The 61-year-old was subsequently appointed as an advisor to Mepcom Polymer Sdn Bhd, where he devised marketing strategies for MPSB, especially in mainland China and Southeast Asia.

According to Computer Forms’ latest annual report, Pang was appointed as ED in May 2022, together with Hoo Swee Guan.

At Wednesday’s AGM, Hoo received support from 114 shareholders to remain on the board, while just four persons voted against the motion.

Hoo, 42, is a practising accountant. He has also been serving as ED at Fitters Diversified Bhd since November 2021 and BCM Alliance Bhd since Jan 4, 2021.

For the financial year ended Sept 30, 2023 (FY2023), Pang drew a total remuneration of RM491,000 from Computer Forms, the highest among the group’s board members, followed by Hoo who received RM445,000.

Pang and Hoo’s combined remuneration represented 66% of Computer Forms’ total remuneration for directors and senior management of RM1.41 million.

At the AGM, shareholders approved the payment of up to RM350,000 directors’ fees and additional fees or benefits of up to RM50,000 for FY2024.

Both Pang and Hoo were appointed to Computer Forms’ board in May 2022 together with Wong Kok Seong, Kho See Yiing, and Tan Li Sin. All three of them also held directorships in Fitters Diversified.

They replaced the previous board after Sanichi Technology Bhd group managing director Datuk Seri Dr Pang Chow Huat in March 2022 bought a 65% stake in Computer Forms from Tan Sri Tan Hua Choon for RM79.91 million.

Chow Huat subsequently launched a mandatory take-over offer at 60 sen per share, which resulted in no change to his shareholding.

Chow Huat held on to his shareholdings until a year later, before offloading a majority of the shares between March 27 and March 31, 2023, and ceasing to be a substantial shareholder.

In March 2023, Computer Forms’ share price dropped significantly from RM2.75 in the beginning of the month, to just 23 sen by March 27, when Chow Huat started selling his stake.

Prior to that, the counter climbed in a rather steep pattern, starting November 2023 at RM1.18, and more than doubled within three months to its historical high of RM2.92 on Jan 12, 2023.

The steep share price appreciation was despite the fact that the group undertook a 30% private placement, raising RM71.2 million between Sept 2022 and January 2023 in three tranches, priced between 96.4 sen and RM2.375 apiece.

Chow Huat owns 8.4% stake in Fitters Diversified as at Sept 26, 2023.

Computer Forms also went through other notable boardroom changes in FY2023, including the resignation of Datuk Wira Justin Lim Hwa Tat, who was wanted by the Malaysian Anti-Corruption Commission (MACC) for allegedly directing and approving five payments totaling RM2.5 million from Sersol Bhd to a private company named HGC Legacy Enterprise.

Computer Forms has a rather fragmented shareholdings structure, with none of its shareholders holding more than a 5% stake, according to its annual report.

The group disclosed that it has 4,351 shareholders in total. Slightly over 10% or 451 of them control 172.96 million shares or a 64% stake in the group.

Notable figures among the group’s 30 largest shareholders include TCH Resources Group executive chairman Datuk Seri Tan Choon Hwa (0.93%) and Chow Huat (0.75%).

Shares of Computer Forms closed one sen or 6.7% lower at 14 sen on Wednesday, giving the group a market capitalisation of RM37.46 million.