Felda cannot withhold dividends, says watchdog

KINIBIZ Felda Global Ventures Holdings Bhd (FGV) cannot pick and chose which settlers are to receive dividends because Malaysian company law ensures that all shareholders must be treated the same, Rita Benoy Bushon of the Minority Shareholder Watchdog Group (MSWG) said.

“Each shareholder of the same class will have to be treated the same, including payments of equal amount of dividend per share,” Bushon (right), who is CEO of the MSWG, stressed in an email response to KiniBiz.

“As long as they are legitimate registered shareholders, the dividends cannot be withheld,” she added.

Bushon was responding to a decision by the board of directors of FGV to deny dividends to Felda settlers who have taken legal action against the company or have illegally sold their Felda-allocated land to a third party.