HARN LEN CORPORATION BHD - Announcements - Bursa Malaysia

The transaction values for the period from 11 June 2004 (the date of the last AGM) to
31 March 2005 (being the last practicable date prior to the printing of this Circular) is as
follows:-
Company Related party Transaction Actual
value
RM’000
Harn Len SCSB Purchases by Harn Len 11,465
of FFB
Harn Len PLNHSB Payment by Harn Len 831
for transport charges
SCSB and PLNHSB are the related parties for all the mandated transactions as set out
above and the interested Directors who are also major shareholders of Harn Len in the
related party transactions are Tan Sri Dato’ Low Nam Hui, Low Quek Kiong, Low
Kueck Shin, Low Kwek Lee and Low Kuek Kong. The nature of their interest in
SCSB and PLNHSB are as set out in Section 2.1 above.
The estimated values may differ from the actual value of the transactions and the
breakdown of the actual aggregate value of the transactions will be disclosed in the
annual report.
There are no new/additional transactions besides the abovementioned transactions
which are subject to the Proposed Shareholders’ Mandate.
2.3 Rationale
The recurrent related party transactions entered or to be entered into by Harn Len as
set out above are in the ordinary course of business. They are recurring transactions of a
revenue or trading nature which are likely to occur with some degree of frequency
and arise at any time and from time to time.
The transactions envisaged under the Proposed Shareholders’ Mandate may be
constrained by its time-sensitive nature and it may be impractical to seek shareholders’
approval on a case by case basis before entering into such related party transactions.
As such, the Board is seeking a shareholders’ mandate pursuant to Paragraph 10.09 of
the Listing Requirements for the related party transactions described in Section 2.1
above to allow Harn Len to enter into such recurrent related party transaction made on
an arm’s length basis and on normal commercial terms and which are not prejudicial
to the interests of the shareholders.
By obtaining the Proposed Shareholders’ Mandate and the renewal of the same on an
annual basis, the necessity to convene separate general meetings from time to time to
seek shareholders’ approval as and when such recurrent related party transactions
occur, will not arise. This would reduce substantial administrative time, inconvenience
and expenses associated with the convening of such meetings, without compromising
the corporate objectives of the Group or adversely affecting the business opportunities
available to the Group.
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