Asami Rushdee, a board member of the Maldives Tourism Development Corporation (MTDC), resigned yesterday after accusing the company’s management of failing to follow board decisions and providing misleading information regarding the board's approval to issue additional shares.
In her resignation letter, obtained by this publication, Asami stated that the decision was prompted by management actions that she believes are contrary to the interests of the company’s general shareholders.
She noted that the management has failed to act in accordance with board directives concerning the Ayada Maldives resort. She further stated that despite inquiries from her and other directors regarding the failure to implement these board decisions, no satisfactory response has been provided.
These allegations from a board member follow a recent denial by MTDC regarding reports that the head lease of Gaaf Dhaal Maguhdhuvaa, where Ayada is located, was being sold to the Turkish company that developed the resort. MTDC had issued a statement asserting that it has no intention of selling any of its assets, including the island.
Regarding the proposed rights issue, Asami clarified that she was the only board member to oppose the move. She argued that the decision would undermine the interests of MTDC’s general shareholders and transform the company into an entity that makes decisions detrimental to the benefits and growth intended for its shareholders, thereby deviating from its founding purpose.
Asami disputed management’s claims that the board had granted full approval for the rights issue, noting that the information was released to the media without providing the board with necessary updates on preconditions. She emphasised that announcing board approval for a share sale without these updates creates a false perception of board members among shareholders and the general public.
"While officially recording my objection to the aforementioned decisions, I am resigning from my position as continuing on this board could be perceived as an endorsement of these decisions, which I do not accept. I believe this is the best course of action for the shareholders and the company," Asami stated in her letter.
MTDC has scheduled its Annual General Meeting (AGM) for later this month. The agenda for the meeting includes a vote on the proposed rights issue and the appointment of new directors.
