ESR 6.25% 1.5¢ estrella resources limited

If you get a group together who hold 5%+ of the shares on issue,...

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  1. 29,081 Posts.
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    If you get a group together who hold 5%+ of the shares on issue, you can compel a meeting to be called.
    At the meeting, you put your case if you believe the board is not working efficiently or in your interests. Then a vote involving all holders is held, and board changes suggested/enforced.
    However, it is not as simple as it sounds. Not finding something is NOT grounds for a board spill. Also, you would need potential board members there to nominate..... who are you going to replace with who?
    As an example, a group of us once had 60% of shares pledged to replace the board and put a viable project into the company.....
    We couldnt get suitable replacements, or a suitable project, and if we had just spilled the board, the company would have gone into immediate administration.
    A lot of work went into that, but we failed......and eventually the company failed.

    Hey, it has been done, and with great success..... but as I say, you need the right people.
    if you want to try it, get some skilled and well known people on board first, I'd say.

    GZ
    Last edited by groundzero: 29/04/17
 
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