FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 336 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 61 SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD (i) On 2 January 2019, Dato’ Mohd Hairul Abdul Hamid has been appointed as Chief Financial Officer of FGV. (ii) On 3 January 2019, in relation to the Termination of the Joint Venture Agreement between FGV Myanmar (L) Pte. Ltd., a wholly owned subsidiary of the Company and Pho La Min Trading Company Limited in 12 May 2017, the Board of Directors of the Company announced that FGV Pho La Min Co., Ltd. ( “ FGV PLM ” ), the indirect joint venture of the Company has been terminated. This was following the notification received from The Government of the Republic of the Union of Myanmar, Ministry of Investment and Foreign Economic Relations, Directorate of Investment and Company Administration. As a result, FGV PLM has ceased to be a joint venture company of the Group. The termination will not have material financial impact to the Group for the financial year ending 31 December 2019. (iii) On 23 January 2019, Dato’ Haris Fadzilah Hassan has been appointed as a new Chief Executive Officer and his appointment has been concurred by the Minister of Finance (Incorporated). With the appointment of Dato’ Haris Fadzilah Hassan as Chief Executive Officer, Datuk Wira Azhar Abdul Hamid has resigned as the Interim Chief Executive Officer. (iv) On 12 February 2019, all Defendants to the suit filed by FGV on 23 November 2018 against its former members of the Board of Directors and former employees on the acquisition of APL ( “ Company suit ” ) have filed their respective Defences except for one, who is directed by the High Court to file his Defence on or before 4 March 2019. On 11 February 2019, certain Defendants to the Company suit have filed a counterclaim ( “ the Counterclaim ” ) against FGV and the current members of the Board of Directors of FGV ( “ Counterclaim Defendants ” ). The Counterclaim seeks reliefs, jointly and severally, against FGV and the Counterclaim Defendants for declaration that FGV and the Counterclaim Defendants are liable for the loss of RM514 million (in the Company’s suit) and for any damages, general damages and interest at 5% per annum to be indemnified by FGV and Counterclaim Defendants. The Company’s solicitors are in the process of reviewing the Counterclaim and advising FGV on the same. (v) On 12 February 2019, the member’s voluntary winding up process for Felda Plantations Sdn. Bhd. ( “ FPSB ” ), a dormant and indirect subsidiary of the Company has been completed and was deemed fully dissolved pursuant to Section 459(5) of the Companies Act 2016. (vi) On 20 February 2019, the process to strike-off the name of Felda Global Ventures Rubber Sdn. Bhd. ( “ FGVR ” ), a wholly-owned subsidiary of the Company, from the Register of the Companies Commission of Malaysia under Section 550 of the Companies Act 2016 ( “ the Act ” ) has been duly dissolved under the Act. The dissolvement will not have material financial impact to the Group for the financial year ending 31 December 2019.