We’re doing an EGM whether you like it or not, Aurora tells 8IP
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Aurora Funds Management is going ahead with a meeting to boot the board of listed venture capitalist 8IP Emerging Companies — even though it’s been told the meeting is against the law.
Aurora (ASX:AOD), which owns 19.99 per cent of 8IP (ASX:8EC), is trying to get rid of the board, citing its involvement with troubled video producer Big Unlimited (ASX:BIG) as a major concern.
8IP said Aurora’s meeting requisition notice breached the Corporations Act in respect of removing directors, didn’t meet the company’s constitutional requirements for electing directors, wasn’t lodged properly, and was misleading and deceptive.
“In view of these defects, 8EC considers that any resolutions passed at the meeting will be invalid and of no effect,” the company said.
“8EC and its directors maintain that by issuing a notice of meeting which omits material information and is misleading or deceptive, and by abridging the statutory notice period by more than 50 per cent, Aurora has denied shareholders the ability to make an informed decision regarding the proposed resolutions.”
On Thursday, Aurora said it was going ahead with the meeting on April 16.
8IP wants its investor to adjourn the meeting and provide other shareholders more information on its claims.
It is threatening to take Aurora to court if these negotiations fail.
Aurora claims to be concerned about a lack of share price traction and the riskiness and lack of returns of some of 8IP’s companies.
Aurora has pointed a finger at an investment in beleaguered tech company Big UnLimited (ASX:BIG).
It cites a report in the AFR that says Big allegedly bought a subsidiary of a company partly owned by 8IP’s chief investment officer Kerry Series in November last year, who then bought 1 million Big shares for the 8IP fund.
“Aurora is concerned that Mr Series potentially used 8EC’s investable capital in support of, or connected to, a sale of one of his private assets.
“As at today, 8EC currently has approximately 2.5 per cent of its NTA in BIG, a company which entered a trading halt on 19 February 2018 and currently remains suspended on the Australian Stock Exchange, pending an ongoing investigation into its conduct,” Aurora said in its notice of general meeting, which has been publicly released by the ASX.
8IP shares were flat on Thursday morning at 91c.