Abano Healthcare Group [NZX: ABA] is mulling the extraordinary general meeting request from rebel shareholders Peter Hutson and James Reeves who want to dump Trevor Janes as chairman and refresh the board.
In acknowledging the requisitioning of a special meeting by Hutson and Reeves, who together hold 19 percent of the company, the healthcare investor's board reiterated its support for Janes.
"The Abano board, which remains unanimous in its support for Mr Janes as chairman and in its support of the company's strategic direction, will now consider the requisition and update shareholders in due course," the company said in a statement.
The meeting would be preliminary to agree to an actual vote at another EGM on May 30 on whether to remove Janes as a director, giving Hutson's investment vehicle Healthcare Industry time to put its case in a statement to shareholders.
An EGM can be called at the request of 5 percent of a company's shareholders, which the pair's shareholdings easily exceed. They have nominated May 27 for the initial meeting.
The two investors say Abano's dental clinics are underperforming, providing an investment return of 3-4 percent a year since 2010 - less than banks are offering on deposit - and with more risk.
Abano shares were $6.50 before trading opened this morning, and have gained 2 percent this year.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- PayPal ‘on shaky ground’ as it pulls service from second Netflix unblocker popular with Kiwis
- Directors claim $14.2m in Albany Heights liquidation
- Telcos cave in to Commerce Commission
- Worse financial crisis needed to achieve effective financial regulation: professor
- Gareth Morgan wades into Awaroa beach
Most listened to
- Paul Brislen on the merits of "cutting off the money" versus Netflix' technical attempts to shut-out unblockers
- Westpac's Dominick Stephens says dairy prices are still a major concern, despite El Niño fears fading
- London School of Economics Professor John Kay discusses financial regulatory shortcomings
- Nathan Smith reviews North Korea’s missile launch and Italy’s slow bank collapse in this week’s Foreign Affairs Scope
- Nevil Gibson discusses which countries are the big R&D spenders in his latest Editor's Insight