FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 FINANCIAL STATEMENTS 309 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 57 SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONTINUED) (b) On 6 June 2017, the Board of Directors of the Company informed that the Group President/Chief Executive Officer and Group Chief Financial Officer of the Company have been given leave of absence commencing from 6 June 2017 pending investigations of certain transactions under Delima Oil Products Sdn. Bhd., an indirect subsidiary of the Company. In the interim, a Board Executive Committee, comprising of two (2) FGV Directors, YBhg. Dato’ Dr Omar Salim and YBhg. Dato’ Mohd Zafer Mohd Hashim, together with En. Azman Ahmad, Head of Logistics Cluster will take over the responsibility to perform the functions of the Group President/Chief Executive Officer. The Board has also appointed Pn. Aznur Kama Azmir, Group Financial Controller, Plantation Sector as the Interim Group Chief Financial Officer. The Group Chief Financial Officer and the Group President/Chief Executive Officer (“GP/CEO”) have resumed their duties on 4 October 2017 and 16 October 2017 respectively. (c) On 19 June 2017, Tan Sri Haji Mohd Isa Dato’ Haji Abdul Samad resigned as a Chairman of the Company. On the same day, Tan Sri Dr Sulaiman Mahbob has been appointed as an Acting Chairman of the Company. (d) On 20 July 2017, The Board of Directors of the Company informed on the appointment of YBhg. Dato’ Khairil Anuar Haji Aziz, Chief Operating Officer, Logistics & Others Sector as the Officer-In-Charge to take over the duties and responsibilities of the Group President/Chief Executive Officer and at the same time the Board Executive Committee be disbanded with immediate effect from 20 July 2017. (e) On 11 September 2017, the appointment of Datuk Wira Azhar Abdul Hamid as Chairman of the Company was recommended by the Nomination and Remuneration Committee and approved by the Board of Directors. With the appointment of Datuk Wira Azhar Abdul Hamid as the Chairman of FGV, Tan Sri Dr. Sulaiman Mahbob ceased to be the Acting Chairman of the Company. (f) On 21 December 2017, Felda Marketing Services Sdn. Bhd., an indirect subsidiary of the Company, disposed 16% equity interest in AXA Affin General Insurance Berhad (“AXA Affin”). The interest in AXA Affin carried at RM159.4 million was disposed off on 21 December 2017 at the sale price of RM11.78 per share for a net consideration of RM198.9 million, resulting in a gain on disposal of RM73.2 million to the Group. As a result of the disposal, the brought forward available-for-sale reserve amounting to RM33.7 million relating to AXA Affin had been reclassified during the financial year and recognised in other operating income (Note 7). (g) On 20 December 2017, Felda Global Ventures Plantations Sdn. Bhd. (“FGVP”), a wholly-owned subsidiary of the Company, entered into a Share Sale Agreement to acquire 100% of the total issued and paid-up share capital of Asian Plantations Limited (“APL”) from the Company at its carrying amount of RM567.90 million. Thereafter, on 27 December 2017, the APL shares were acquired by Felda Global Ventures Plantations (Malaysia) Sdn. Bhd. (“FGVPM”), a wholly-owned subsidiary of FGVP via a Share Sale Agreement for a total consideration of the same amount. The above is an internal re-organisation exercise which resulted in APL becoming a direct subsidiary of FGVPM and an indirect subsidiary of the Company. There is no change in the Group’s effective interest in APL arising from the internal re-organisation exercise.