AUSTRALIA: Buderim Ginger shareholders threaten to revolt and unseat board
Directors of Queensland-based Buderim Ginger have clashed with a group of angry shareholders, who have threatened to revolt and unseat the board members at the company's extraordinary meeting on 20 February.
Under the lead of former MD John Ruscoe, the dissident shareholders, who together hold 13% of the Buderim Ginger's stock claim that the actions of the company's non-executive directors have caused poor share prices and a lack of dividends. They also argue that Buderim Ginger's profits fell by 169% from A$2.3m (US$1.2m) in 1994 to a A$1.6m loss in 2000.
Board chairman David Graham rubbished the claims, however, commenting in a letter to shareholders: "Your directors consider that the effect of what is proposed ... will be tantamount to a takeover of the company as the interests represented by the requisitionists will control the board and thus the company."
"Your directors believe that if the requisitionists wish to control the company they should make a takeover offer at a proper price for shareholders to consider," he added.
Graham also rubbished the "mischievous" shareholder group's "opportunistic" proposal and their "misleading" claims.
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