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- Release Date: 19/05/14 10:30
- Summary: GENERAL: ABA: Employment Relations Authority Decides In Favour Of Abano
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ABA
19/05/2014 08:30
GENERAL
REL: 0830 HRS Abano Healthcare Group Limited
GENERAL: ABA: Employment Relations Authority Decides In Favour Of Abano
Following an Employment Relations Authority decision released on Friday 16
May 2014, the Abano-appointed directors of Bay International Ltd ("Bay") have
terminated the employment agreements of Peter and Anya Hutson.
The Authority ruled that the Abano directors on the Bay board have the right
on behalf of Bay to terminate the employment agreements between Bay and Peter
and Anya Hutson, whose associated interests also own 50% of the shares in
Bay.
Peter and Anya Hutson, along with Abano executives Alan Clarke and Richard
Keys are the directors of Bay.
The Authority noted that in regard to the Hutsons' conflicts of interests
arising from the takeover bid in which they were involved last year, Alan
Clarke and Richard Keys had suggested, "protocols be put in place to manage
the conflicts". This was rejected by Peter and Anya Hutson.
In ruling in favour of the Abano-appointed directors, the Authority noted
that to not have the right claimed by Abano "flouts business common sense and
would produce a commercially absurd outcome."
The ruling confirms the position long maintained by the Abano-appointed
directors and, on behalf of Bay, they have terminated the Hutsons'
employments.
This termination does not affect the Hutsons' shareholding or their ongoing
rights to board representation on Bay. Both shareholding groups are, to that
extent, now on an equal footing.
Chairman of Bay, Alan Clarke, says that after a disappointing start to the
audiology venture, several changes were made to local senior management teams
in both Australia and Asia.
"The new executive team in Australia has made a material difference and we
are seeing a significant improvement, with solid sales growth over the past
two years. This has provided us with confidence that the business is now on
track to achieve break even at EBITDA, and to then provide a positive profit
contribution to the Abano Group."
ENDS
End CA:00250580 For:ABA Type:GENERAL Time:2014-05-19 08:30:14
