latest from the australian

www.theaustralian.com.au/business/companies/goldmine-dissidents-get-their-man-up/story-fn91v9q3-1226237779321

Goldmine dissidents get their man up

* by: Matt Chambers

DISSIDENT shareholders in Perth mining junior Paynes Find Gold have scored a victory, with chairman Paul Berresford stepping down and one of the shareholders, Carl Popal, joining the board - despite last month losing a vote to become a director in controversial circumstances.

The company is facing a Federal Court law suit from convertible note holder and former Patersons Securities stockbroker Phil Coulson, who is looking to have it wound up.

It is understood Mr Coulson, through his company Troca Enterprises, took up a significant part of a $750,000 convertible note issue in August and a subsequent $400,000 note issue.

Paynes shares have been suspended since October.

The legal action and board change are the latest in a series of dramatic events that have seen Paynes chief executive Peter Salter dismissed amid sexual harassment claims, board members voted down at the annual general meeting and threats of legal action over a vote count at an extraordinary general meeting last month.

Director Adam Bennett, who has had a long association with Mr Salter, told the stock exchange yesterday that Mr Berresford had resigned as chairman and company secretary three weeks ago.

Mr Popal would take his place as company secretary and become a non-executive director, Mr Bennett said.

In a move that tests the boundaries of corporate governance, Mr Bennett was voted off the board at the November 11 annual general meeting only to be reinstated as a director the next working day by Mr Berresford.

It is understood Perth lawyer and Range Resources executive director Peter Landau will become chairman, potentially providing enough board firepower to remove Mr Bennett and the only other remaining director from Mr Salter's days at the company, John Hatherley.

The other director, Doug Taylor, is aligned with Mr Popal.

Mr Popal narrowly failed to be elected to the board at the December 9 extraordinary meeting after incorrectly filled-in proxy votes were not counted.

The meeting, at which Mr Popal was backed by Perth porn baron Malcolm Day and skimpies king Steve Zielinski, was called after news that Paynes had raised $9 million from investors since last year, but had just $300,000 in the bank at the end of September.

Mr Popal and the board have put forward a proposal to the stock exchange to pay the noteholders back.

Mr Coulson has launched liquidation proceedings in the Federal Court. The disputed assets are the Paynes Find Goldfields, 420km northwest of Perth..
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it would be interesting to know the reasons for the legal action by mr coulson??? there needs to be a trigger for liquidation proceedings - eg non payment of a debt. sometime ago, watso in Post #: 7555176)wondered if non payment of interest at the end of december, could be a trigger for liquidation.


mr coulson would have lent money to the company on certain terms and conditions, and so long as the conditions are met,then the debt, cannot be called in.

anyway, the article mentions the following

"It is understood Mr Coulson, through his company Troca Enterprises, took up a significant part of a $750,000 convertible note issue in August and a subsequent $400,000 note issue."

so how come the $400,000 issue was not announced by the company???.

it was mentioned that the company will seek to refinance (ie pay out the convertible notes), and have an underwritten writes issue.

one can expect a heavily discounted issue - maybe a 2 for 1 at 2c