JKX Oil and Gas is facing a possible boardroom coup as nearly 50% of shareholders revolt over directorships.
Eclairs Group Ltd, which holds 27.5 percent of the total voting shares in the London listed firm, want to oust Chief Financial Officer Russell Hoare, CEO Thomas Reed and non-exec director Vladimir Rusinov.
Chairman Paul Ostling and executive directors Alan Bigman and Bernie Sucher would be allowed to remain under the proposed changes, while Michael Bakunenko, an Eclairs director, would join the board.
But during a meeting of the board to discuss Eclair’s proposals it became clear that Proxima Capital Group, a 20% shareholder, no longer supported the incumbent directors – and like Eclair’s favoured a “significant restructuring”.
In a statement JKX, which has onshore assets in Ukraine and Russia, said Proxima has not proposed any particular board composition.
Proxima’s directors have also not disclosed how they intend to vote on the Eclairs proposals or the draft AGM resolutions being prepared by the company.
As a consequence, the remaining board directors expect that some, if not all, of the AGM resolutions which will be sent to shareholders in the coming days will not have the unanimous recommendation of the board.
The JKX statement said: “The executive and independent directors are particularly disappointed to be announcing the withdrawal of support by Proxima, the shareholder that led last years’ overhaul of the board, at a time when the company is launching the groundbreaking field stimulation program announced only yesterday, a central plank of the turnaround strategy previously supported by Proxima.
“The executive and independent directors will, over the coming days, carefully consider the AGM resolutions which best serve and protect the interests of the company, and the corresponding recommendations they will make to shareholders.”