A group of shareholders in Donaco International Limited have filed a formal request for an extraordinary general meeting (EGM) to consider the removal of company founder Joey Lim Keong Yew and his brother Benjamin Lim Keong Hoe from the board of directors.
The request is from three shareholders, named as Spenceley Management Pty Ltd as trustee for Spenceley Family Trust; Spenceley Management Pty Ltd as trustee for Spenceley Family Superannuation; and Antonia Caroline Collopy, who together hold more than 5% of issued Donaco shares.
Notably, the Spenceley in question is James Spenceley, Chairman of fellow Southeast Asian casino operator Silver Heritage Group which runs Tiger Palace Resort in Nepal.
Under Australian Securities Exchange listing rules, companies must call a meeting to vote on any resolution requested by shareholders representing 5% or more of a company. The meeting must also be called within 21 days of the request being issued and held within two months.
In a Monday announcement, Donaco said it will arrange for the EGM within the prescribed timelines.
The shareholders’ move against the Lim brothers comes after the Australian Takeovers Panel was forced to strike down the on-market acquisition of a 9.71% stake in Donaco by Asian investment firm Orchard Capital Partners (OCP) because the company had already seized control over a 27.25% stake previously held by Joey Lim. Lim defaulted on a loan from OCP late last year.