The founder of litigation funder Just Kapital wants to axe the board
The founder and former chairman of litigation funder Just Kapital is trying to kick out the board he left last year.
The company has received a meeting requisition notice from Twin Investors, a company “associated” with Philip Kapp.
Twin Management is the entity through which Mr Kapp extracted the Just Kapital assets he wanted from the company last year.
Twin Investors owns over 5 per cent of the company, and wants to kick out chairman Tim Storey who cofounded the business, Anthony Murphy, and chief and managing director Diane Jones and replace them with three “unspecified” people.
Just Kapital claims there are discrepancies in the notice, and is calling it a “purported section 249D notice”.
“Over the last seven months the company’s management has focused its efforts on returning the company to a cashflow positive position,” the company said.
The Just Kapital board went through a complicated process last year to extricate itself from Mr Kapp and the litigation funding business is started Just Kapital with.
The company was forced to slash sky-high executive salaries last year in the first of a series of travails.
Then-chairman and managing director Mr Kapp’s salary dropped by 35 per cent from $775,000 to $500,000.
Then-CFO and COO Dianne Jones saw her salary cut from $525,000 to $400,000.
They then lost a major deal to buy a US health litigation funder because they couldn’t raise enough cash.
And it culminated in Mr Kapp quitting in October and doing a deal to walk away with the litigation side of the company.
Just Kapital shares dropped 6 per cent at the open on Friday, hitting 6.6c.