Hoe Leong re-appoints executive director 2 days after his failed re-election

Singapore

MAINBOARD-LISTED heavy equipment trader Hoe Leong has re-appointed Joseph Liew Yoke Pheng as an executive director - just two days after his re-election was voted down at the company's annual general meeting (AGM).

The quick about-turn prompted a query from the bourse operator Singapore Exchange (SGX).

In its response on Thursday, Hoe Leong said that proxy forms supporting Mr Liew's re-election from two substantial shareholders, United Overseas Bank (UOB) and DBS Bank, had arrived past the submission deadline on June 23.

Hoe Leong also told the SGX that UOB and DBS each hold a direct interest of 28.66 per cent and 16.32 per cent respectively in the company.

Proxy forms were supposed to have been received by 10am on June 22. The AGM was held two days later.

Had these proxy forms been submitted within the deadline and the banks' shares included in the counting of votes for the resolution on Mr Liew's re-election, the resolution would have been passed by a majority of votes at the AGM, Hoe Leong said in a June 26 statement.

At the AGM, 100 per cent of the votes were against Mr Liew's re-election. He was at the time chairman of the board, a member of the nominating committee, and the chief executive officer (CEO).

In contrast, the re-election of two other directors passed with full support.

The resolution to issue shares to Mr Liew as the chief executive officer as part of his remuneration package also failed.

Nonetheless, the 64-year-old Mr Liew remained as the CEO.

On June 26, he was re-appointed as an executive director, board chairman and member of the nominating committee, as a result of taking into account the votes from UOB and DBS.

But Hoe Leong also said Mr Liew's appointment will be subject to a shareholder vote at the next general meeting, which should coincide with the presenting of proposals to shareholders for several pending corporate actions, including the proposed amendments to the constitution, or the proposed disposal of two of its vessels.

Mr Liew was appointed as the CEO last October, and was made board chairman a month later. His then appointment had the support of UOB and DBS, Hoe Leong said in the response to SGX.

Apart from Hoe Leong, Mr Liew is the lead independent director of Catalist company Grand Venture Technology. He is also a certified fraud examiner and certified information-systems auditor, in addition to being a fellow of the Institute of Singapore Chartered Accountants, Hoe Leong's disclosures showed.

Trading in Hoe Leong's shares was suspended last September, after it was issued a statutory demand from UOB for the payment of a loan of some S$5.7 million, it has been reported.