MIED's board of trustees continue way past their age limit via a loop hole in the Companies Act and this has irked several MIC leaders.
PETALING JAYA: Last week, former MIC chief S Samy Vellu as the chair of the party’s education arm – Maju Institute of Education Development (MIED) – announced that he was seeking to enlarge the MIED’s membership, which now stands at 38 members.
This drew the ire of several MIC top leaders, although not publicly.
Party leaders want Samy Vellu to hand over the MIED, which has amassed assets worth nearly RM1 billion, but the former MIC supremo wants to hold on to it.
And to achieve this, Samy Vellu, 75, wants to enlarge the MIED membership base by adding another 10 members.
The question arises, what would he gain by adding members and how could he consolidate his position by enlarging the MIED membership base?
FMT did its own research and spoke to some disgruntled leaders who did not want to be named. The problem was with the loopholes in the nearly 50-year-old Companies Act.
Section 129 (1) of the Act states that no person of or over the age of 70 shall be appointed or act as a director of a public company or of a subsidiary of a a public company.
MIED is a company limited by guarantee and since no shares are involved, the Indian community becomes the beneficiary.
It is also due to this reason, MIED has trustees instead of directors. However this does not make MIED immune from the above stated section.
The loophole in this section is that it allows for the trustees to remain in their position provided they have two third support of the total membership.
Section 129 (6) allows for anyone above the age of 70 to hold on to the position if a resolution was passed at an annual general meeting and consent of “majority of not less than three-fourths of such members of the company” is obtained.
They can be appointed or reappointed as a director and hold office until the next annual general meeting or be authorised to continue in office as a director until the next annual general meeting of the company.
Over the years, in the normal circumstances, MIED trustees and members, were appointed by the MIC central working committee, the party’s highest decision making body.
When contacted, MIC vice president S K Devamany declined comment on this matter as “it would be subjudice.”
“Let the law take its course. I cannot comment,” he said.
MIED member, S A Vigneswaran, obtained an injunction on Friday to stop Samy Vellu from raising the number of members in MIED.
“Samy Vellu is looking to extend his term as the MIED chairman. He also wants the terms of those close to him to be extended as well. If the 10 proposed members are allowed in then he would obtain the two-thirds majority required by the Companies Act,” said a party insider.
“On the other hand, those aligned to (current president G) Palanivel want him out. This is because MIED is a cash cow. It has funds to help needy Indian students.
“With this in hand, Palanivel would touch base meeting Indian students who want to pursue their higher education. Presently, although Palanivel is the party president, the community especially the students meet Samy Vellu to take up MIED loans.
“Palanivel’s people feel that he is losing out because he does not control all segments of the party,” he added.
PETALING JAYA: Last week, former MIC chief S Samy Vellu as the chair of the party’s education arm – Maju Institute of Education Development (MIED) – announced that he was seeking to enlarge the MIED’s membership, which now stands at 38 members.This drew the ire of several MIC top leaders, although not publicly.
Party leaders want Samy Vellu to hand over the MIED, which has amassed assets worth nearly RM1 billion, but the former MIC supremo wants to hold on to it.
And to achieve this, Samy Vellu, 75, wants to enlarge the MIED membership base by adding another 10 members.
The question arises, what would he gain by adding members and how could he consolidate his position by enlarging the MIED membership base?
FMT did its own research and spoke to some disgruntled leaders who did not want to be named. The problem was with the loopholes in the nearly 50-year-old Companies Act.
Section 129 (1) of the Act states that no person of or over the age of 70 shall be appointed or act as a director of a public company or of a subsidiary of a a public company.
MIED is a company limited by guarantee and since no shares are involved, the Indian community becomes the beneficiary.
It is also due to this reason, MIED has trustees instead of directors. However this does not make MIED immune from the above stated section.
The loophole in this section is that it allows for the trustees to remain in their position provided they have two third support of the total membership.
Section 129 (6) allows for anyone above the age of 70 to hold on to the position if a resolution was passed at an annual general meeting and consent of “majority of not less than three-fourths of such members of the company” is obtained.
They can be appointed or reappointed as a director and hold office until the next annual general meeting or be authorised to continue in office as a director until the next annual general meeting of the company.
Over the years, in the normal circumstances, MIED trustees and members, were appointed by the MIC central working committee, the party’s highest decision making body.
When contacted, MIC vice president S K Devamany declined comment on this matter as “it would be subjudice.”
“Let the law take its course. I cannot comment,” he said.
MIED member, S A Vigneswaran, obtained an injunction on Friday to stop Samy Vellu from raising the number of members in MIED.
“Samy Vellu is looking to extend his term as the MIED chairman. He also wants the terms of those close to him to be extended as well. If the 10 proposed members are allowed in then he would obtain the two-thirds majority required by the Companies Act,” said a party insider.
“On the other hand, those aligned to (current president G) Palanivel want him out. This is because MIED is a cash cow. It has funds to help needy Indian students.
“With this in hand, Palanivel would touch base meeting Indian students who want to pursue their higher education. Presently, although Palanivel is the party president, the community especially the students meet Samy Vellu to take up MIED loans.
“Palanivel’s people feel that he is losing out because he does not control all segments of the party,” he added.
No comments:
Post a Comment