This had been attempted previously in 2012, where there was 2 attempts by disgruntled shareholders to replace board members, obviously both attempts failed. The key factor (IMO) was that King held a controlling amount of shares so any attempt would of needed to be properly orchestrated.
Replacing management isn't an easy task, here is the nuts and bolts of it (I have been involved with removing the board of another ASX listed company)
1) You need to decide if replacing management is the right thing to do
2) How much of the management needs replacing
3) If you replaced part of the board, would the old happily work with the new
4) When you make your intentions known, the market will react
5) To replace any or part of the board, you have to have replacement
6) A failing share price isn't enough to warrant wanting to change a board member/s (IMO)
The above are the easy things to achieve in the process.
a) To even make an attempt to remove any/part of a board, you need at least shareholders that own 5% of the registry to issue a s249D (requisitioning members) to call a meeting.
b) Then, from memory a further 50% of the registry will need to support it
c) You have to be able to sell the spill to the shareholders, meaning that although the company is obliged to insert the statement of the RM's (requisitioning members) in the notes of the EGM (Extraordinary General Meeting) outlining what the reason for the change are and why their candidate/s would be better suited for the tasks of managing and moving the company forward doesn't necessarily mean that ALL shareholders will be aware of your concerns.
d) Doing a mail out to all shareholders is time consuming
e) Unless you are replacing or wanting to replace King then you swimming against the tide.
Personally, I don't think this avenue is the right course of action to take because I think that management will get given a loud and clear message at the AGM when the votes are counted, this in itself will/should be enough of a catalyst to have things improved.
I also think that the key issues to the displeasure is the way things are being managed at Morabisi, as a lot of posters have indicated GPP's own geologist should be on the ground at Turesi rather than letting GSM totally run the show, but how much input can we have until we complete phase 3 to achieve 51% of the earn in?
If I was looking for an addition/replacement to the board I would throw @anatol name in the hat.
As much as I am not a particular fan of him, his passion/knowledge and research is one of his key attributes - does he have the credentials to take a board position?
The above is all IMO only
cheers
GPP Price at posting:
1.0¢ Sentiment: Hold Disclosure: Held
