Initially I was going to vote to reinstate http://sin1-ib.adnxs.com/it?e=wqT_3QK3BvBENwMAAAMA1gAFAQjwgo7HBRDIweOcy_GloRMY8ef-4s-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-AC4e876gJ0aHR0cDovL3d3dy5hZnIuY29tL2JyYW5kL3JlYXItd2luZG93L3RoZS12aXNpb25hcnktaGlzdG9yeS1vZi1zYWNrZWQtcHJhZW1pdW0tY2VvLW1pY2hhZWwtb2hhbmVzc2lhbi0yMDE3MDMzMC1ndmExajKAAwCIAwGQAwCYAxegAwGqAwDAA6wCyAMA2AP44S3gAwDoAwD4AwKABACSBAYvdXQvdjKYBAGiBA4yMjAuMjM5LjI1MS45MagE3WeyBA0IABABGOQHIHgoADAAuAQAwAQAyAQA0gQLMTAuMTQuNzQuMTjaBAIIAeAEAPAEQb5EiAUBmAUAoAX___________8B&s=39f4cec9ebc8da28867820247f261449ac959001&referrer=http%3A%2F%2Fwww.copyright link%2Fbrand%2Frear-window%2Fthe-visionary-history-of-sacked-praemium-ceo-michael-ohanessian-20170330-gva1j2Michael Ohanessian but the more I read about this saga the more uncertain I am. I admit I was only thinking about voting for whatever would raise the share price of PPS in the short term.
The AFR has had some interesting articles the last 2 weeks re Ohanessian including stories about him being sacked in 2006 as the CEO of Vision BioSystems and the fact that his wife works for PPS as http://sin1-ib.adnxs.com/it?e=wqT_3QKxBvBEMQMAAAMA1gAFAQjbho7HBRDkkqa1utag2SQY8ef-4s-NzJ1wIAEqLQmeDI6SV-dIPxGeDI6SV-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-OEt4AMA6AMA-AMCgAQAkgQGL3V0L3YymAQAogQOMjIwLjIzOS4yNTEuOTGoBOVnsgQNCAAQARjkByB4KAAwALgEAMAEAMgEANIECzEwLjE0Ljc0LjMx2gQCCAHgBADwBIuU0B6IBQGYBQCgBf___________wE.&s=dd61144fb8dc37be5164e6ff321df69e3b7c269e&referrer=http%3A%2F%2Fwww.copyright link%2Fbrand%2Frear-window%2Fwhy-did-praemium-board-really-sack-michael-ohanessian-20170326-gv6sf0http://sin1-ib.adnxs.com/it?e=wqT_3QKvBvBELwMAAAMA1gAFAQjbho7HBRCRktW7k-rg_jUY8ef-4s-NzJ1wIAEqLQmeDI6SV-dIPxGeDI6SV-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-oCamh0dHA6Ly93d3cuYWZyLmNvbS9icmFuZC9yZWFyLXdpbmRvdy93aHktZGlkLXByYWVtaXVtLWJvYXJkLXJlYWxseS1zYWNrLW1pY2hhZWwtb2hhbmVzc2lhbi0yMDE3MDMyNi1ndjZzZjCAAwCIAwGQAwCYAxegAwGqAwDAA6wCyAMA2AP44S3gAwDoAwD4AwKABACSBAYvdXQvdjKYBACiBA4yMjAuMjM5LjI1MS45MagE5WeyBA4IABABGKwCINgEKAAwALgEAMAEAMgEANIECzEwLjE0Ljc0LjMx2gQCCAHgBADwBIiU0B6IBQGYBQCgBf___________wE.&s=32e99e9750a09b0f96f8b43314e84e016e22a1b8&referrer=http%3A%2F%2Fwww.copyright link%2Fbrand%2Frear-window%2Fwhy-did-praemium-board-really-sack-michael-ohanessian-20170326-gv6sf0Praemium's global communications manager, a job that was not advertised (probably some nepotism here.
However I am more concerned about the fact that Ohanessian had an inability to get along with the Board and the fact that PPS had 3 different Chairman in five and a half years. It appears that Ohanessian was unwilling to provide important information to the Board when requested of him. As Stephen Bartholomeuz in The Australian writes, "it is the CEO and his executives that are appointed by the board and answerable to the directors. The board hires and fires CEOs and sets the corporate strategy. To perform its duties — and meet its legal and fiduciary obligations — it has to be informed. A CEO can’t dictate the terms on which they will engage with their board or refuse reasonable requests for information that enables directors to assess the condition and performance of the business — and the performance of the executives".
Finally I am concerned about the independence of the Board should Ohanessian and his supporters succeed in filling the Director's positions with their own nominations. I think the new Directors would have trouble maintaining independence and making sure the CEO governed for the benefit of all shareholders if they are on the same ticket as Ohanessian. Again, as Stephen Bartholomeuz points out,
"Those requisitioning the extraordinary meeting to remove the existing board and replace them with their own nominees appear to have no agenda other than to reinstate Ohanessian as CEO.
The fact that Ohanessian is formally a party to the requisition has enabled the current board to claim that the three directors nominated by him and his supporters — Barry Lewin, Stuart Robertson and Daniel Lipshut — have been “hand-picked” by him, which they say poses a significant risk to the independent conduct of the new board should it be elected.
If the challenge is successful, having kicked out an entire board of a public company to put their man back in the CEO’s seat, it would be very difficult for that board to then terminate him if they came to the conclusion at some point that their relationship with the CEO was also unworkable.
Praemium is a small company but the attempt by Ohanessian and the shareholders supporting him to return him to his former role and the unusual insights they have provided into the relationships between the directors and their CEO ought to be assessed against some quite fundamental principles of good corporate governance.
On that basis it would appear there have been some significant failures over quite a lengthy basis and another major failure might be looming if the challenge succeeds"
(20min delay)
