A GROUP of shareholders today launched an attack on the board of Gold Coast-listed junior explorer Coppermoly (ASX:COY), calling for the removal of two directors from the company.
Six shareholders, who collectively hold 20 per cent of Coppermoly and five per cent of the company’s voting rights, have called for an extraordinary general meeting under 249D of the Corporations Act (2001).
In correspondence to the company, the group says it will push for the removal of non-executive directors Maurice Gannon and Ben Faulkner and seek the appointment of Shawn Uldridge as a non-executive director. Gannon is the company secretary.
Uldridge is a founder of William Shaw Securities and his involvement with Coppermoly stretches back to its listing on the ASX in January 2008. He is among the shareholders who have called for the meeting.
“Many Coppermoly shareholders are concerned Coppermoly has not taken a conservative enough approach to its capital,” Uldridge says in a statement today to Gold Coast Business News.
“Many of us have made our concerns clear verbally and in writing, and we believe that not nearly enough has been done. We believe that many of the decisions that the company has made have been strategically the wrong ones.
“We believe the removal of certain directors is the only option that remains available to shareholders in order for the company to be successful in the future.’’
Shareholders who are signatories to the correspondence, which was delivered to the ASX today, include: Rising Bird Investments; John Francis Rebbechi; William Stanley Yeaman; Simon William Tritton; New Guinea Gold Corporation; Shawn Uldridge and Kimberly Lowery.
New Guinea Gold is Coppermoly’s largest shareholder while four of the other signatories are listed in the top 20.
Coppermoly’s share priced dropped by more than 20 per cent after the correspondence was made public, but recovered to be down 3.23 per cent at $0.03 when the market closed.
Gannon is on the Gold Coast. Coppermoly managing director Peter Swiridiuk (pictured) is currently in Mexico while other board members are in Canada and Papua New Guinea.
The company has six projects in Papua New Guinea and one in Queensland’s Esk Trough.
The company was not able to offer any further comment today.
Coppermoly must call the general meeting within 21 days of receiving notice and it must be held within two months. No date has yet been set.
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support