Challenge to receiver of Sovereign

Press, 3 July 1985, Page 36

Challenge to receiver of Sovereign

PA Wellington The receivers of the listed, but suspended, Sovereign Gold Mines, Ltd, have again been challenged by two Sovereign diectors, Messrs P. A. Hyde-Harris and K. C. Hunt. In a statement to the Stock Exchange yesterday, the two directors said they advised shareholders that Barclays Bank, ANZ Bank and the receivers had been given seven days to hand over the assets of Sovereign to the directors. “This demand is based on legal opinion obtained by the directors, who have again advised the banks and receivers that, accordingly, the receivership is both in-, valid and illegal,” they said.

“Shareholders are further advised that Sovereign has three gold recovery units in operation, but the directors are unable to produce recovery results, as the receivers steadfastly refuse to make any of this information available.” Messrs Hyde-Harris and Hunt said they had also requested on many occasions that the receivers fund a shareholders’ meeting to disclose the state of the company’s finances, again to no avail. They said it was their contention that the shareholders must be informed as to the company’s future. They were doing all they could to achieve this.