Investors with MIC's investment arm, Maika Holdings, will get their money after shareholders voted overwhelmingly today to dispose of its subsidiary insurance company Oriental Capital Assurance Berhard (OCAB).

Maika chief executive officer Vel Paari said that investors will get RM1.00 for each share invested, including bonuses, within four months.

"At this moment, the minimum I can guarantee you is RM1.00 per share, and that's including buying back of the bonus shares at RM1.00. Once this is done, my work is completed," he told reporters following the company's AGM held at Sime Darby Convention Centre in Kuala Lumpur.

Over 1,100 shareholders, most of whom were proxies, voted at the AGM. Several scuffles were reported during the proceedings, following which shareholders were escorted out of the hall.

Five resolutions were tabled, including one which calling for the disposal of equity interest held in OCAB, where 20,748,901 votes in shares voted in favour while 370,625 voted against.

In resolution five, 20,825,151 votes in shares voted in favour for the distribution while 270,625 voted against.

Maika, an investment company set up to increase Indian Malaysian equity, has put OCAB up for sale at RM129 million. The company had been profitable until last year when it suffered a loss of RM9.33 million.

Other assests to go too

Vel Paari said engineering company Celcon had made the highest bid for OCAB, which will be dispose of at RM1.75 per share, he said.

"We were hoping to take Oriental public. At that time we did appoint CIMB Merchant Bank to do the full evaluation on the process of taking it public. They said we could get in terms of listing, an IPO (initial public offering) of RM1.60 and that was also based on projected after tax profit," said Vel Paari, who has been CEO since 1999.

"In 2005, we didn't achieve that kind of ranking so they were looking between RM1.10 and RM1.60. We had to get what was the best value for our shareholders," he said.

Vel Paari said the initial offer was at RM1.33, approved by Bank Negara, from IOE, a Japanese insurance company.

"Once we sell the insurance company, we want to dispose the other assets as well, and give the shareholders an option. Those who want to take it and those who want to maintain the funds in the company."

"I'm hoping to see it done within two to three months or two to four months, but you know with Order 69, I can't actually give a time frame," he said.

On why former MIC deputy president S Subramaniam's opposition to the sale could not be tabled, Vel said the former's proposals came too late.

"I explained to him under public guidelines, you have to give seven days before the AGM date. But since his came two days before, the board cannot accept it. I asked the company secretary to explain to him. He said he was satisfied with the explanation," the CEO said.

Vel Paari also said that the board opted for ballot voting to prevent scuffles: "The problem with a show of hands is some people would shout 'put down your hand, put down your hand'. You always have this type of problem, last time we ask to have a show of hands, they started shouting."

Maika still has some 200 acres of land in Sepang, which will be disposed off. In addition a management buyout has been proposed for Maika's intellectual resources.

"Other assets, we already have buyers. My focus now is to work to get a discount from the institution which we still owe some money and then try to give the money to the shareholders in three to four months time," said Vel Paari.

'My conscience is very clear'

Asked on his performance as CEO, Val Paari said, "If you ask me, I have done well for the company. But if I was really allowed to do my work, instead of spending more time at the commercial crime and the anti-corruption office, I think I would have done better. No regrets.

"My conscience is very clear. I came to do a job. We got back our money. At least everybody is getting RM1.00 minimum," he said.

Meanwhile, several shareholders expressed outrage at today's proceedings, which were marred with several outbursts and scuffles.

Several shareholders were escorted out by security personnel after speaking from the floor. Some were cut off mid-way, including Subramaniam.

"It is just a farce. The board of directors did not explain what has gone wrong with Maika. They did not explain why in the last 24 years, Maika has been operating at a loss," said DAP legislator M Kulasegaran

"They were only ten policemen around and they did nothing when microphones were pulled away from shareholders after they raised certain matters," he said.

Another shareholder, Kumarasen, an accountant, said that shareholders who oppose the sale were not allowed to speak at length of their disgruntlement.

"It looks like the shareholders have been ripped off. At the end of the day, the last remaining finance license will go into the hands of people who have no idea what they are getting into," he said.

"This is the remaining asset for the Indians. This is no racist undertone. But this should be a lesson that corporate governance is needed in a listed company. There was complete ruckus inside. In the name of security, you have people bashing other people up," he added.

A shareholder from Perak, who did not wished to be named said he did not expect to get much returns from the disposal.

"Five of my family members invested into Maika. For all of us, it is a big loss. Even if we were to get our money back, it would still be a loss because of inflation.

"The money could have been put to better use in this 24 years," he added.

Maika was established in 1982 to increase the equity of Indian Malaysians. The company raised RM106 million in 1984 from 66,000 investors. Maika has only paid its shareholders cash dividends on seven occasions to date, the last being in 1995. It will not be paying dividends this year.