Shareholders deserve better? Sounds like two of the board...

Shareholders deserve better? Sounds like two of the board members agree with that statement.

Natural Fuel directors flock to the exit
Mark Hawthorne
November 1, 2007

FULL DISCLOSURE

THERE has been a mass exodus from the board of Natural Fuel since last Monday's heated board meeting.

Chairman John Hewson and non-executive directors Jerome Rowley and Roger Stroud have all resigned, effective immediately, after a stoush with some of the company's shareholders.

"We have resigned from Natural Fuel following disagreements with a group of major shareholders over issues including the management of the company and, most importantly, its governance," said the departing trio in a statement.

"We took the view that a proxy fight over the next six to eight weeks would have been against the interest of all shareholders and other stakeholders and could affect a number of negotiations."

Natural Fuel exported its first shipment of biodiesel in August. Hewson has spent much of the past year putting finance in place and getting the company's production facilities up and running. He said yesterday the company was in a position to become one of the "world's leading biodiesel companies". However, a divide has emerged on the company's eight-man board, with two directors "representing the views of major shareholders".

"It's a tragedy," Hewson said. "But the decision was taken in the interests of all shareholders, including small shareholders, and with the banks and bondholders in mind."

The former opposition leader and staunch campaigner for corporate social responsibility plans to remain in the industry.

"We nevertheless remain committed to the biofuels industry, and the inevitability of its success, and therefore will now pursue a number of other opportunities in this sector," reads the official statement.

The market greeted the news of the resignations by pushing the shares up 2.2 per cent to 23¢.