THE board of medical device maker OMI is set for a dramatic upheaval after company founder Bruce Kiehne started action yesterday to sack the directors.
Joint managing director Keith Taske, his brother and chairman Dr John Taske, and non-executive directors Michael Hayne and Laurie Litzow received notice on Thursday that major shareholders wanted their dismissal. The exact reason for the sensational boardroom spill remains unclear, with Mr Kiehne saying only that he was "acting in the best interests of his shareholders".
The directors received a letter on Thursday from Mr Kiehne's solicitors, Clayton Utz, demanding their resignation by midday last Friday.
When that deadline passed they were told their future would now be subject to a shareholder vote under Section 249 of the Corporations Act.
It is understood Friday's letter was signed by about 12 shareholders who hold 37 per cent of the company.
Mr Kiehne and his wife Vanessa own about 30 per cent, indicating that support was garnered from minority retail investors.
The company's second largest shareholder, Critune Pty Ltd, a venture capital outfit that bankrolled OMI before it floated, was not a signatory. It holds 9.16 per cent and is owned by Motorama associates John Woelders and Gary Brenchley.
Mr Brenchley was last night due to meet with Dr Taske for an explanation of the unexpected conflict.
OMI shares gained 11 , or 8 per cent, yesterday to close at $1.40.
In a briefing yesterday, Mr Taske said there was no animosity with Mr Kiehne nor any reason the board could identify.
Mr Taske was headhunted from the US to become joint managing director in December last year and Mr Kiehne has hinted he wants to move further into the research and development side of the business.
The OMI board is due to meet again tomorrow but it is not known whether Mr Kiehne will attend.
There has been no contact between him and the directors since last week. He cancelled a meeting with Dr Taske planned for October 17 after rumours started to circulate.
"Whatever we do and what we are attempting to do is in the best interests of the company," Mr Taske said yesterday.
"We have attempted to maintain all discussions and hopefully resolve within the confines of the boardroom but it has now been extended as a matter of public knowledge.
Dr Taske said the directors remained keen to stay on the board, despite possible sour relations.
"I take my role very seriously as chairman of the company in doing the absolute best to bring this company to a profitable situation for shareholders," he said.
Shares in OMI have struggled recently in light of increased competition in its sector.
Mr Kiehne said the current board had lost the confidence of shareholders and should be removed. He has suggested four replacements whom he refused to identify.
"This is a very serious thing but it's the major shareholders, it's not just me," Mr Kiehne said.
"My main issue is for my shareholders. I don't move about any petty stuff. There is 37 per cent, they are not happy with the board's performance."
ICU Price at posting:
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