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On June 8th Conroy Gold and Natural Resources (CGNR) said that it had received a demand to hold a GM to clear out most of the existing board and replace them with Paul Johnson and Gervaise Heddle linked to Metal Tiger and large shareholder Patrick O'Sullivan. Since then silence.
The directors who are to be fired if the rebels win are Seamus FitzPatrick (Non-executive Deputy Chairman), James Jones (Finance Director), Dr Sorca Conroy (Non-executive Director), Louis Maguire (Non-executive Director), Michael Power (Non-executive Director) and David Wathen (Non-executive Director). There is no doubt that, many investors feel that, the Conroy board is bloated and too costly. But the coup would see team Metal Tiger in the majority and calling the shots.
Conroy said it was "taking advice." That should not take it very long. It does seem as if the incumbents are playing for time as the maths looks grim for them. The board, largely Professor Richard Conroy, owns 28.16% of the equity but Metal Tiger and O'Sullivan own c35%. And I am aware of at least one more shareholder who is backing the rebels taking their stake to 36%+
That leaves 36% in the hands of thousands of punters who have joined the register as a result of numerous placings often with bucket shops over the years. That is not a crime and indeed it has been the only way junior miners have survived in the bad times, but it does mean that there are thousands of punters with holdings so small they they just will not bother voting. And if they do vote it is far from certain that they will have enough patience to back the incumbents. But my bet is for a very high non vote. And that makes it really very hard indeed to see the incumbents surviving.
That might, perhaps, explain why it is taking so long to "take advice."
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