Donaco International Ltd has revealed it will call a shareholder’s meeting upon the request of On Nut Road Ltd – the Asian-based investment firm that recently acquired a 19.25% stake in the company – over a call by two individuals to replace the entire Donaco board.
In an ASX filing, Donaco revealed that it had recently received two notices, both of which it says were invalid, from shareholders Gerald Nicholas Tan Eng Hoe and Patrick Tan Teck Lee calling for the removal of all current directors of the company and for them to be replaced by five individuals, including the two requisitioners. While those notices were deemed invalid, On Nut Road Ltd has now made a request of its own for the shareholders meeting to take place, although it says it does not support the resolutions stated and has no agreement or understanding in place with the duo.
Instead, Donaco’s largest shareholder stated, “It is our view that in order to settle the matters addressed in the Invalid Notice and allow the Company to move forward with the current, stable board, which is not subject to challenge, we believe it is in the interests of the Company to put these resolutions to members.”
Inside Asian Gaming understands that Gerald Tan is a close friend and business associate of Joey Lim, the founder of Donaco who was voted off the board in July after forfeiting his entire 27.25% stake in the company when he defaulted on a loan late last year.
Donaco announced in August the addition of two new board members, Yan Ho Leo Chan and Kurkye Wong, who are representatives of On Nut Road Ltd’s parent company Argyle Street Management Ltd.
Veteran Asia-Pacific gaming executive Paul Arbuckle was also recently appointed as Donaco’s new CEO.
In its latest filing, Donaco noted that, should the resolutions put forward by the two requisitioners be passed, the company would have only one director who ordinarily resides in Australia and would therefore be in breach of the Corporations Act, which requires at least two Directors to ordinarily reside in Australia.