LONDON (Alliance News) - Management Resource Solutions PLC said on Wednesday that shareholders which have requisitioned a general meeting on May 20 to propose a board shake-up have published a statement as required by the requisition.
In mid-April, shareholders Hargreaves Lansdown (Nominees) Ltd and Smith & Williamson Nominees Ltd handed the mining and civil support services company a requisition for a general meeting for Monday next week.
The meeting resolutions proposed the removal of Non-Executive Chair John Zorbas and Finance Director Timothy Jones, as well as the removal of any directors appointed between April 11 and the date of the meeting.
The resolutions also sought to appoint three new directors: Nigel Burton, Trevor Brown and Daniel Smith.
The reasons given for the requisition by the shareholders includes criticism of the current board, which "seems indifferent to investor concerns", as well as concerns over the acquisition of aerial drone operator Alerion Consulting Ltd in March for GBP1.3 million.
According the the requisition shareholders, Alerion founder Elliott Talbott had admitted in an investor presentation on May 2 that Alerion had "never even completed a survey", and Chief Executive Paul Brenton admitted that he "didn't look at any other drone operators" as alternative acquisitions to Alerion.
Management Resource Solutions recommended that shareholders vote against all of the resolutions.
"Zorbas and Jones have supported me in my successful efforts to return the company to profitability and I believe the company should continue to benefit from their business and public company experience. Burton and Brown have been on the board before and I do not support their return which I believe would lead to management disruption and jeopardise the completion of refinancing plans currently in their final stages. As far as I am aware, Smith has no public company experience," Brenton said.
"Various allegations ranging from bad judgement to conflicts of interest have been levelled at the board in relation to the Company's acquisition of Alerion, all of which are categorically denied. An independent valuation of Alerion and an independent legal review of the board's procedures leading up to the acquisition have been initiated and the conclusions of both will be announced as soon as they are available," Brenton added.
Shares in the company were trading 5.9% higher at 4.50 pence each.