Glass Lewis issued a controversy alert for PPB Group (KLSE:PPB) shareholders ahead of the company's annual general meting on May 14, according to a recent release.

The alert concerns regulatory and legal issues related to Wilmar International, in which the company is the largest shareholder.

Wilmar International is a major earnings contributor for the company.

The company recognized a material 4.17 billion ringgit impairment on its Wilmar investment, leading to a net loss at the group level.

The impairment stems from regulatory penalties, legal cases, and compliance-linked risks in Indonesia, as well as macroeconomic constraints faced by Wilmar International in China.

The adjustment points to rising doubts about Wilmar International's future contributions.

The alert's rationale relates to relevant media coverage and potential material ESG risk and falls under oversight issue and other governance issue.