Ousted founder pulls out of Smiles Inclusive board bid

Ousted founder pulls out of Smiles Inclusive board bid

Dental care company Smiles Inclusive (ASX: SIL) has today confirmed an attempt to hold a second vote over the board's future has been withdrawn by ousted founder Mike Timoney (pictured).

Timoney and ex-chairman David Herlihy were voted off the board by shareholders at an extraordinary general meeting (EGM) held last month, but since then the former CEO has sought to discredit the voting process with allegations of tampering

A bloc led by Timoney had also tried to install Clinical Advisory Committee head Dr John Camacho on the board, and remove chairman David Usasz and director Tracy Penn, but shareholders thought otherwise.

Unconvinced, the company founder was calling for a second EGM with the same goals as before along with the goal of removing independent director Peter Evans from Smiles.

In its announcement today, the company appears encouraged by the withdrawal.

"The Company is now hopeful that all parties will accept the results of the first extraordinary general meeting and allow the board and management to focus on improving the Company's financial and operating performance, and restoring value for all shareholders," the group says.

"Following notification of the Second EGM, the Company took prompt action to respond to the concerns raised in respect of the voting process and confirm the validity of decisions made by shareholders at the first extraordinary general meeting held on 22 May 2019."

Smiles claims as Camacho and his other associates hold less than five per cent of shares they will have insufficient votes to call the second EGM themselves under the Corporations Act 2011. 

However, in a statement Camacho says a second EGM will be convened in 10 days' time if the current "behind the scenes diplomatic discussions" do not result in a different way forward.

"We are disappointed that the company has decided to issue today's release. It is regrettable. For now will continue the diplomatic path. We will update the market no later than 24th June," he says.

Dr Arthur Walsh, another supporter of the Timoney-Camacho bloc, has called for a dentist/JVP-led solution.

"Failing this, we, along with other disgruntled shareholders beyond Mr Timoney, will table an alternative scenario and choice for shareholders to vote on," he says. 

"A choice different to the one portrayed by the company previously at the first EGM. The status quo is not an option."

Related stories: Ousted Smiles Inclusive founder escalates vote tampering claims

Smiles Inclusive threatens legal action over former CEO's "destructive" campaign

Smiles Inclusive shareholders vote former chairman and founder off the board

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