Friday, June 4, 2010
Tun M: Sime Darby Board must be held responsible for losses
The Board of Directors of Sime Darby Berhad must take responsibility for the RM2.03 billion ringgit losses inccured by the group.
Former Prime Minister Tun Dr Mahathir Mohamad said the Board had fiduciary duties to shareholders and therefore, could not claim ignorance to the events that led to the massive losses.
Such an excuse, he said, did not make sense, as he himself was aware of Sime Darby's losses from as early as 2007.
Dr Mahathir said while the Group Chief Executive was responsible for the losses, the Board of Directors should also be held liable.
“If it had happened in another country, the Board would have resigned by now”, he said.
Dr Mahathir said this in an interview with TV3 this morning.