Kirsh wants to cut off FoneWork directors
The directors they want to axe were not named in the statement.
The Kirsh family hold about 33% of AltX-listed FoneWorx - which provides the technology platforms for companies to run short message service (SMS) competitions - as well as a 75% shareholding of the Value+ Nettwork group.
Last December, the companies announced plans to merge and create a R478m entity, in which 10 areas of potential between the two entities had been identified by Value+ founder William Kirsh - who until 2009 served as chief executive of media group Primedia.
In a statement issued yesterday, the family said there was a "poor state of corporate governance" at FoneWorx, and they would request that the board of directors call an extraordinary general meeting of shareholders in terms of the Companies Act to remove and replace the non- executive members of the board and retain the executive directors to implement the merger.
"In our view, the fundamental corporate governance weaknesses at FoneWorx are undermining the shareholders' opportunity of building shareholder value," Issie Kirsh said.
"The extraordinary general meeting will be the most objective measure of shareholders expressing their views," he said.
William Kirsh confirmed the support of the Kirsh family and Value+ shareholders to achieve a successful merger.
"We have been aware of these corporate governance weaknesses and intended to resolve them post the implementation of the merger. We are proposing to reconstitute the non-executive members to restore proper governance, achieve the merger and build shareholder value in FoneWorx," he said.
The statement said that FoneWorx had failed to develop strategies that would enhance shareholder value, both strategically and financially.
Source: Business Day via I-Net Bridge
Source: I-Net Bridge
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