Launceston-based baby formula company Bellamy's Organic took another hit on Wednesday as news emerged its biggest shareholder had moved to oust four of the company's directors.
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Singapore-based investor group Black Prince Private Foundation, which owns a 14.5 per cent stake in the company, submitted a requisition late last month to hold a general meeting of Bellamy’s shareholders with the purpose of overhauling the board.
The proposed overhaul would see independent non-executive directors Patria Mann, Launa Inman, Michael Wadley and Charles Sitch removed from the board, to be replaced by Chan Wai-Chan, Vaughan Webber, Kathmandu founder Jan Cameron and Black Prince Foundation representative Rodd Peters.
The requisition comes in the wake of a disastrous month for the company, which saw its shares drop from $12.09 to $6.56 in early December.
The 40 per cent drop induced the Bellamy’s board to voluntarily suspend trading of its shares, leading three legal firms to consider pursuing class actions on behalf of disgruntled shareholders.
In a statement on Wednesday, Bellamy’s chairman Rob Woolley threw his support behind the four directors in the firing line.
Mr Woolley said while he respected the right of shareholders to seek resolutions, the proposal would bring disruption rather than stability to the company.
“I support my fellow directors in opposing the proposal from Black Prince, which is an unwanted distraction for the board and senior management as we work towards lifting the suspension of trading in Bellamy’s shares,” Mr Woolley said.
“The depth of experience and independence that the current non-executive directors bring to the board will assist to deliver long term value to shareholders.”
The company will remain in suspension until January 13, barring another announcement.
The general meeting is expected to be held before the end of March.
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