LONDON (Alliance News) - Velocity Composites PLC said Monday it received a letter prompting certain board members to resign and urging for the reappointment of former chief executive officer Jonathan Bridges and non-executive director Peter Turner.
The company said that the letter came from Bridges and co-founders Gerard Johnson and Christopher Banks, who are working together to secure Bridges and Turner's reappointments. Together they hold a 42.95% interest in the firm.
The letter demanded one or more board resignations by this afternoon. If the resignations do not occur, the three will requisition a general meeting to effect the changes.
However, Velocity said it does not "consider that the appointment of Bridges and Turner would be in the interest of all shareholders".
It added: "Indeed, the board believes that the approach is potentially damaging to the company, its shareholders, employees, customers and supply chain at the current time when the focus should be on the future and improving business wins and performance.
"The demand for resignations contained no outline of any change of strategy nor gave any reason for the proposed resignation or resignations. None of the directors are currently considering resignation, but, if Jon Bridges and Peter Turner are successfully reappointed to the board, Executive Chairman Mark Mills will resign and Independent Non-Executive Directors Brian Tenner and Meera Parmar have indicated that they are minded to resign."
Co-founders Johnson and Banks resigned from the board in May 2017, when the company listed on the London Stock Exchange. Their employments were officially terminated two weeks ago.
Turner resigned in August and Bridges resigned as chief executive officer in September but remained as chief technical officer.
Velocity shares were untraded at 28.50 pence each.
Velocity Comp (VEL)