Millennium Services bosses resign amid calls for shareholder meeting
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The chairman of professional cleaner Millennium Services has resigned along with two board members after one of the company’s majority shareholders tried to call an extraordinary general meeting to oust them.
Peter Anderson, chairman of the board, and Sally McCutchan and Stephen Williams resigned effectively immediately, the company told investors this morning.
That was after the board received a notice from Tomi-Sasha Holdings — the third-largest shareholder with 12.7 per cent — calling for an EGM to remove Mr Anderson under section 249D of the Corporations Act, which requires companies to hold general meetings if requested by shareholders with more than 5 per cent ownership.
In a statement to the ASX, Millennium said: “in the interests of maintaining board stability, minimising unnecessary disruptions and avoiding uncertainty and costs associated with an EGM, Mr Anderson has resigned effective immediately”.
Directors Ms McCutchen and Mr Williams then followed suit. Tomi-Sasha Holdings has now withdrawn its EGM request.
Shares in the $30 million company were down 4 per cent to 66c just after 11.30am AEST.
Roger Smeed has been appointed as interim chairman, making for a quick rise since his appointment as director on September 27. He’ll seek to be appointed ongoing chairman at the company’s AGM, yet to be given a formalised date.
The company’s 2018 annual report stated that consulting fees of $371,044 were paid to “an entity related to Tomi-Sasha Holdings for the year ended 30 June 2018”, noting that the same fee in the 2017 financial year was $205,119.
It also states that “wages and other benefits of $89,908 were paid to close family members of the controller of Tomi-Sasha Holdings in their capacity as employees of the group” for the 2018 financial year, compared with $118,870 the year prior.
On September 10, Tomi-Sasha Holdings, based in Cape Schnack, increased its voting power from 12.19pc to 12.74pc.