Ananda Krishnan's death casts a frightful shadow over the ownership of his quasi-GLC assets in Malaysia, and the conduct of his lieutenants

 by Ganesh Sahathevan 

    Ananda Krishnan circa 1968.Photo courtesy of former business partner and blood brother,Ken                   McMahon of Minsec. Photo taken at the McMahon's home in Seaforth, Sydney

While much is being made of the waelth and death of Malaysia's second richest man, Ananda Krishnan, the issue of who takes charge of his very substantial assets in Malaysia which include MAXIS, Asto, MEASAT and Bumi Armada , mostly held via his private company, Usaha Tegas Sdn Bhd, is being left unsaid. In fact, his death casts a frightful shadow over the ownership of these assets, given their quas-GLC status, either having substantial Malaysian Government shareholding, and almost invariably dependent on licenses from the Malaysian Government. WHile Ananda and his partners did very well out of that status, his demise means that it will be for his lieutenants to attempt and emulate the charisma of their master. As the photo above and the story behind it suggests, that would be a very difficult thing to do.

Then, as previously reported (see story below) are various adverse findings against them, made at a time when they enjoyed the shield of his virtual immunity, which is of course no more. 

TO BE READ WITH 

Thursday, November 28, 2024

Ananda Krishnan is dead, review of trustee Chan Chee Beng's position long overdue, action by regulators in Malaysia should no longer be forestalled

 by Ganesh Sahathevan 

Photo from 1959 of the Melbourne University SRC. Ananda standing at far left.He was presidnet of the SRC while at Melbourne University,at the height of the White Australia Policy

Billionaire Ananda Krishnan's death  raises questions of succession, and in particular about control over his assets, nominally held via a series of trusts. In Malaysia his  trustees and   managers have been regarded as above the law, given Ananda's standing, and given the inextricable link between politics  and business in  Malaysia. Among them is Chan Chee Beng, whose position as trustee has been intenable for quite some time. Given Ananda's death , Chee Beng departure should follow. 

TO BE READ WITH 

Tuesday, January 19, 2021

Usaha Tegas' Chan Chee Beng: Are there trust law issues given PanOcean Management Limited's position as trustee ,and Chan's regulatory settlement for insider trading in Maxis warrants, which are trust assets.

 by Ganesh Sahathevan 

The following are excerpts from the Bumi Armada 2018  Annual Report: 

Chan Chee Beng has more than 39 years of experience in general and financial management, investment banking and accounting including stints with Ernst & Young and Morgan Grenfell & Co. Ltd prior to joining the Usaha Tegas Sdn Bhd (“UTSB”) Group in 1992 as Head of Corporate Finance. He is currently a Director of UTSB Management Sdn Bhd.

Usaha Tegas Sdn. Bhd. (“UTSB”) is a party related to the Company by virtue of its substantial equity interest in Objektif Bersatu Sdn. Bhd. (“OBSB”), a substantial shareholder of the Company. The ultimate holding company of UTSB is PanOcean Management Limited (“PanOcean”). PanOcean is the trustee of a discretionary trust, the beneficiaries of which are members of the family of Ananda Krishnan Tatparanandam (“TAK”) and foundations including those for charitable purposes. Although PanOcean and TAK are deemed to have an interest in the shares of the Company through UTSB’s deemed interest in OBSB, they do not have any economic or beneficial interest in such shares as such interest is held subject to the terms of such discretionary trust.

A director of a wholly-owned subsidiary of  a trustee may  well have duties to the trust and its beneficiaries that are subject of legislation in  the jurisdiction of incorporation, and the jurisdictions in which it conducts its business. 

These legal questions arise given Chan's regulatory settlement for insider trading in Maxis shares, which are trust assets. 

TO BE READ WITH 

Sunday, December 15, 2019

Chan Chee Beng remains a director of a number of listed and private companies despite a "regulatory settlement" with the SC with regards insider trading of Maxis warrants:Is the leniency 1MDB related? .

by Ganesh Sahathevan