Abu Bekir Reveals Sequence Of Events To Counter Cmsb Claims

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Mahmud Abu Bekir Taib claims he has been denied access to the financial accounts of Cahya Mata Sarawak Bhd despite being a director and deputy chairman.
KUALA LUMPUR: The clash between Cahya Mata Sarawak Bhd (CMSB) and its deputy chairman Mahmud Abu Bekir Taib over the company’s financials took another turn today with Abu Bekir disputing CMSB’s claims over his request to inspect its books.

In a statement sent to the media today, Abu Bekir described the company’s assertions that he had been duly informed that an alternative date would be set for an inspection of the company’s financial accounts as “misleading and inaccurate”.
Documenting the sequence of events, Abu Bekir, who is also a director of CMSB, said he first made a formal request for the company’s accounting information, via email, to its chief financial officer on Feb 19.
Having failed to receive a response, he followed it up with a second email the next day, but the company’s continued silence on the matter, and its failure to request an extension of time, forced him to escalate the matter, in writing, to the company secretaries on Feb 27.
It was only the following day that CMSB group chairman Mohd Zahidi Zainuddin responded.
“(He) affirmed that as a director, Mahmud (Abu Bekir) was legally entitled under the Companies Act 2016 to inspect its records,” the statement said.
However, Zahidi also stated that the right was not absolute and was subject to provisions in the company’s constitution.
On the other hand, Abu Bekir argued that Article 160 of the company’s constitution as well as Section 245(4) of the Companies Act gave directors “an unfettered right” to inspect its books and accounts.
He also asserted that as director of the holding company, he was entitled to oversight of and access to the financials of its subsidiaries.
He said CMSB’s refusal to provide the financial documents he requested and its failure to seek an extension of time left him with no choice but to file an originating summons on March 6 “to obtain the necessary financial records”.
“The suggestion that I provided insufficient notice for the company to produce financial records is not only misleading but completely inaccurate,” Abu Bekir said.
“It was only after these repeated efforts on my part were ignored that I was compelled to take legal action to uphold transparency and accountability,” he added.
Abu Bekir is seeking a court order to compel CMSB and its subsidiaries – Cahya Mata Phosphates Industries Sdn Bhd, Cahya Mata Cement Sdn Bhd, Oiltools International Sdn Bhd, Cahya Mata Oiltools Sdn Bhd, and Cahya Mata Professionals Sdn Bhd – to produce all accounting and financial records for inspection within seven days.
He also wants appointed auditors, accountants, or advocates to be given copies of the records “to ensure a thorough and independent review”.
Abu Bekir said he had planned to bring these issues up for discussion at a meeting of the CMSB board on March 7 but was not allowed to sit in at the meeting.
He claimed that this infringed upon his rights as a director and was a violation of corporate governance rules.
“I remain steadfast in my duty to act in the best interest of all stakeholders, ensuring that Cahya Mata operates with the highest standards of transparency and accountability,” Abu Bekir added. - FMT

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