Another article this morning in Gold Coast Bulletin, by Mr Alister Thomson discussing claim by Sean Connolly against SIL.
I was sitting with Sean Connolly at one of the JVP Ferrari events (which I thought wasn't a great look, people have enough issues with dentist fees without thinking they all drive Ferraris), Sean described himself as a longterm friend of Mike.
Looking at Sean's LinkedIn profile his background is in sales including property sales and commercial fit-outs of office spaces. He does not show any previous merger and acquisitions experience in any of his past roles since 1987.
https://uk.linkedin.com/in/sean-a-connolly
Despite this he was provided a contract by Smiles Southport Pty Ltd (original company registered by Mr Timoney for acquisitions) reportedly for $180k, plus super, plus commission. The commission being sought in his claim is a further $96k. In negotiating this contract "Mr Timoney said that he ran the company and the board would agree to what he said."
As a result of issues with amendments to Mr Connolly's contract, he had a meeting with Tracy Penn, stating "he was unhappy that another promise by Mr Timoney had fallen through and he wanted Ms Penn to be instrumental in making sure his contract and commissions were amended and agreed in writing."
At the subsequent contract meeting, Mr Connolly requested Ms Penn be present to witness any conversation between he and Mr Timoney. Stating "I have not pushed to get written agreements because of my relationship with you [Mr Timoney]... but now I want everything in writing" further stating "... I also don't want to take any of my salary in barter dollars from the moment we list."
Mr Connolly was allegedly dismissed by Mr Herlihy without notice due to the poor performance of the company since listing and negligible merger and acquisition activity going forward. When seeking compensation for his relocation and his wife leaving her own employment in the UK, Mr Herlihy allegedly said "We aren't giving you anything. I think you have been paid a lot of money."
These are quotes from the claim by Mr Connolly. There are a number of issues that should be of concern to all shareholders.
Mr Connolly's suitability and relevant experience for the role is not clear to me; I will say he was certainly passionate and likeable when I met him. However his relationship with Mr Timoney raises questions as to the motivations for his appointment given the apparent lack of relevant experience.
Mr Connolly's concerns about Mr Timoney failing to fulfil promises and insistence on having another individual present to witness conversations and having agreements in writing would be prudent for all. I certainly now regret not obtaining certain commitments from Mr Timoney in writing.
The company has lodged a notice of intention to defend in respect to many of the claims by Mr Connolly.
As always happy to discuss further personally via [email protected] I appreciate the time taken by shareholders who have already contacted me. Voting for the EGM is still possible online. Please consider all relevant information when voting. Don't forget to vote in that other minor election occurring today too!
On a side note, I recently managed to obtain a copy of Mr Timoney and Mr Herlihy's 61 pages of "fact files", apparently this was sent to shareholders. It appears this may have been selectively sent as no packs reached the entities I hold shares in SIL. I find the use of phone screen captures, quotes from Hotcopper and ridiculously redacted communications to be childish and embarrassing for the company. It reminds me of a low effort high school project without any substance.
For those who didn't see the seperate thread with an excellent post about this document by pasivle:
https://hotcopper.com.au/threads/turnaround-plan.4761815/#post-38570768
Have a great weekend.
Cheers,
Jon
