Did Bojun’s directors quit for asking too many questions? The company says no
Health & Biotech
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The ASX has been tipped off that the surprise resignation of two Bojun Agriculture directors may have been because one started asking difficult questions of the board.
The market operator sent a “please explain” to Bojun, querying who has access to its bank accounts and what a man named Xiaoran Zhang had to do with the company.
“ASX understands that one of those directors was asked to resign after raising questions around BAH’s corporate governance arrangements, specifically in relation to who is able to access its bank accounts and about the possible involvement of a Xiaoran Zhang with BAH,” the market operator said.
Former NSW politician Andrew Stoner quit in the middle of June as chairman of Bojun (ASX:BAH).
But Bojun said it was all just a misunderstanding.
It promised they didn’t “refuse to arrange a board meeting to discuss questions around BAH’s corporate governance arrangements raised by Hon. Andrew Stoner”, and in fact it was in the process of arranging just that meeting.
But they found out Mr Stoner was on the board of another ASX-listed Chinese company facing a potential class action and asked him to quit.
The deal was that they’d pay him out all outstanding directors fees to the end of June and severance of one month’s director’s fees.
Stockhead understands the other company is China Dairy Corporation (ASX:CDC). Mr Stoner quit that board the not long after he left Bojun.
Mr Stoner did not wish to comment for this article.
Bojun says Chen Chik Ong quit without giving specific reasons for his exit.
On the issue of Xiaoran Zhang, Bojun says his company was an advisor when it listed in Australia.
It says the only services they use Beijing Ruihua Future Investment Management Co for now is translation at board meetings.
Stockhead is seeking comment from Bojun.
Bojun spent $942,000 on administration in the six months to March 31, after listing in November.
It spent $1.3 million on listing expenses.
Half year sales of products such as mandarin fruit vinegar hitting $46 million and profits hitting $7.6 million.
Bojun shares were flat at 30.5c on Wednesday.