Bank Rakyat calls for calm on move to end govt control

Bank Rakyat is a cooperative bank owned by more than 900,000 members.

KUALA LUMPUR: Bank Rakyat, a cooperative bank, has called for calm among members and customers on news that a group of private members are attempting to end government control of the bank’s management.

In a statement today, the bank said business operations will continue as usual and the bank will continue to service its customers.

On Friday a group claiming to represent the bank’s 900,000 shareholders filed suit to dissolve the current government-appointed board of directors.

The group sought a judicial review of the Bank Kerjasama Rakyat Malaysia Bhd Act (Special Provision 202) 1978 under which the bank is controlled by the government. They also seek a shareholders meeting by which the operation of the law can be terminated.

The application was filed by shareholders Abdul Aziz Zainal, Mustafha Abd Razak and Rahim Yunus, who are members of a pro-tem committee that claims to represent the bank’s 900,000 shareholders.

They also said that shareholders had been rebuffed by entrepreneur development minister Mohd Redzuan Yusof in their request to invoke powers to end the act.

Bank Rakyat’s board has also refused to allow an extraordinary general meeting by which the government could be made to invoke the termination clause.

The bank said today that it respected and accepted the views of its members, as one of the bank’s stakeholders.

“The bank considers the differing views among its members as a normal matter especially for a cooperative that has the highest number of members in Malaysia,” the bank said.

The bank said among its achievements was being able to maintain a dividend rate payment at a minimum of 10% or more for 20 years, and had consistently recorded profits of more than RM1 billion per year since 2008.

Bank Rakyat said this proved that the cooperation between the government and the bank had provided a lot of benefits to members and the local community.

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