Unico Holdings Bhd

UHB was formed in 1984 under the auspices of the Associated Chinese Chamber of Commerce and Industry of Malaysia. Its purpose was to pool the resources of the Chinese community for investment in the country. It was supposed to be run by reputable and experienced businessmen for the benefit of the 22,000 shareholders.

It has been 23 years since its formation. There has not been much success in its investments. The only successful venture is Unico-Desa Plantations Bhd. When UDPB went public, UHB shareholders were alloted some shares. Other than the above reward, UHB shareholders have not got much returns on their investment. There is only a paltry dividend of about 5% annually to speak of.

You wonder if the directors of the company really have the interest of the shareholders at heart. They are all successful business people. Why are they not able to make a success of UHB? Are they making use of their position in UHB to advance their own interest?

Now, there is a proposal to distribute the values in UDPB to shareholders of UHB. I think it is about time. However, the people involved cannot agree on how it should be done. Law suits have even been filed against some people for slander.

I think what is of upmost importance is the well being of the shareholders. They should be rewarded the maximum possible. Directors should not be selfish and greedy. Execute the matter amicably and expeditiously. Forget about the law suits. Otherwise, this issue may make the Chinese community the laughing stock again.