gm 18.03.11, page-54

http://www.smh.com.au/business/a-rival-lurking-in-the-data-room-20110214-1atq2.html?skin=text-only


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Shareholders in Vmoto, a scooter maker, can put in their diaries the planned March 18 extraordinary meeting to tip out the former executive chairman Russell Goodman if they like - but do not count on its happening.

Vmoto appears to have one of the more fluid board, executive and ownership structures of ASX-listed companies, and lately more time seems to have been spent on gaming one another than on turning around last year's $3.5 million loss.

Now, a company associated with Retail Food Group, a Gold Coast franchisor of chains including Brumby's bread, Michel's Patisserie and Donut King, appears to be mopping up Vmoto shares.

More intriguingly, there is every chance that they are sympathetic to Goodman, whose Tahitian holiday was ruined early last month when his two fellow directors Trevor Beazley and Charles Chen (a co-founder of Vmoto), convened a board meeting via a phone hook-up to tell him he was out as an executive and that they would like him gone as a director, too.

That prompted Goodman to requisition a meeting to dump Beazley, recognising that Chen, who manages the scooter factory in China, is integral. He pulled that request this month, only to have Beazley now try to remove him.

Goodman, whose background is in broking, presided over an apparent palace coup at Vmoto in November when the managing director, Patrick Davin, (who co-founded the business with Chen) suddenly resigned. Goodman took on the role of executive chairman to ''manage and facilitate the board changes''.

By Christmas Eve he had appointed Alicia Atkinson as chief operating officer and announced that the head office of Vmoto was being moved from Perth to the Gold Coast. Perhaps coincidentally, Atkinson's last job was working for Retail Food and its boss, Tony Alford. Oddly enough she is still listed on its website as an executive.

When Goodman was trying to replenish Vmoto's depleted bank accounts with a placement in early December, one of the ''sophisticated investors'' to take a swag of shares was CGFH Holdings, which put in almost $1.25 million, and now has 5.4 per cent of the company.

CGFH just happens to be associated with Alford and others at the franchisor, including the chief operating officer, Gary Best. CGFH is also a significant Retail Food shareholder. Neither Alford nor Best have returned calls to discuss the shareholding.