THE NEW chairman of New Guinea Energy (NGE) has said 2015 will be a “transitional” time as it broadens its scope outside Papua New Guinea, but the board is already facing a revolt from shareholders.
Representatives from Kentgrove Capital have issued a notice requiring NGE to hold a general meeting to consider the removal of new chairman Michael Arnett and director Andrew Martin, and appoint former NGE chief executive Grant Worner and Kentgrove directors David Lamm and Adam Saunders in their place.
The proposal, to which NGE was due to respond at the time PNG Resources went to press, came after the remuneration report was rejected at the company’s annual general meeting in May.
Shareholders were asked to approve a share consolidation, of one share for every ten held, as well as approving a 10 per cent placement facility and a change of name to New Energy Resources.
But NGE said that indicative proxy voting at the meeting led Mr Arnett to withdraw the resolutions from the vote, instead only proposing that shareholders pass the company’s remuneration report and the re-election of Sir Michael Bromley as director.
Sir Michael’s re-election was approved, but the remuneration report was rejected by a margin of 173.6 million against to 137 million in favour.
This, NGE said, was sufficient for a first strike under Australia’s Corporations Act, as more than 25% of votes cast at the meeting opposed the report – with the votes opposed representing 20.5% of the total shares on issue.
If a subsequent remuneration report were also rejected by 25% of shareholders, the shareholders could vote to determine whether to call for a spill motion – seeing the entire board run for re-election.
Neither Parkbay Capital nor Kentgrove Capital appeared in a list of the company’s top 20 shareholders as at 12 March 2015.