Here is an extract from today's West Australian. Paynes Find...

Here is an extract from today's West Australian.

Paynes Find faces court actionAmanda Saunders, The West Australian

January 3, 2012,

Beleaguered explorer Paynes Find Gold is facing a Federal Court lawsuit, with former stockbroker Phil Coulson moving to have the company wound up over a stalled convertible note issue.

Mr Coulson was among a group of investors who agreed to help Paynes raise $1.15 million in convertible notes last year, just months after its $6.5 million December 2010 float. He has since launched a liquidation action in Perth's Federal Court through private vehicle Troca Enterprises.

It is understood Mr Coulson, son of WA racing legend Phil Coulson, subscribed for a significant portion of the convertible notes.

Shares in Paynes, which is under fire from disgruntled investors trying to roll the board, have been suspended from trading since October.

The suspension relates to a board dispute over a $400,000 tranche of the convertible notes, which were issued without disclosure to the market.

The stock last changed hands at 6¢, well below its 20¢ float price.

Separately, Paynes is facing a board shake-up, with the resignation of chairman Paul Berresford. Mr Berresford, who was also Paynes' accountant, company secretary and landlord, said yesterday he was pleased to be parting ways with the gold explorer but believed it had good assets, "so at least all the fighting has been over something".

It is understood plans are under way for corporate lawyer Peter Landau to step in as chairman.

Dissident shareholder Carl Popal, who last month failed in his attempt to gain a board seat, would also join as director.

Neither the Federal Court lawsuit nor Mr Berresford's resignation, which occurred last month, have been announced to the sharemarket.

Paynes director Doug Taylor said yesterday the company had put a proposal to the ASX before Christmas for the directors to repay Mr Coulson and fellow noteholders in full. The payout was subject to the ASX approving the board changes.

It is understood Mr Popal, through his company Ghan Resources, would stump up about $800,000 of the required funds.