Hi Amisnic,
I can't get the whole letter up here, it's three pages long, but the jist of it is:
it's a letter written by a guy named John R. Allen, who says he's a shareholder who invested in the company since its IPO in 2004 and has never sold a share. He has garnered the support of six of the top 20 shareholders for an attempt to replace the current chairman and CEO with new directors. He lists the following issues:
1. the board is inadequate, as evidenced by the fact that for the first time since the company's inception there were no plantation sales in the June quarter.
2. The current board is not financially invested in the company (holding a combined total of less than 1% of the shares).
3. The current board is not supported nor respected by staff and staff morale is low.
4. The board's response to the post-Glaucus disaster has been fueled by panic. Communication with investors broke down, no plantations sales were achieved, and the discount-priced oil sale generated dissatisfaction among customers who did not receive the same discount.
He then outlines strategies for change: a new board of knowledgeable, committed and accountable directors with leadership qualities and experience in the sandalwood industry, who will also make financial investment in the company so they have "skin in the game". He and the other shareholders in his group will be giving the company notice under section 249D of the corporation act to call an extraordinary general meeting to replace Gooding and Matthys with new directors.
Once the new board takes control it will engage the services of Frank Wilson; the legal proceedings against FW by the company will need to be resolved before FW can be considered for any executive or director role.
He concludes by listing the new board's plan and strategy to stabilise the company:
1. resume plantation sales to institutional investors and retail investors in FY 18
2. resume wood sales to China at former premium prices in FY 18
3. commence sales of oil to India in FY 18
4. Replace Matthys with a new CEO who commands confidence and respect from staff and investors
5. Improve staff morale
6. Significantly cut corporate costs that have ballooned in the finance, accounting and compliance areas
7. Reduce all unnecessary forestry maintenance and overhead costs.
