Bid to remove Arahi pair

Press, 29 June 1987, Page 26

Bid to remove Arahi pair

PA Wellington Two directors of Arahi Properties, Ltd, will face a bid to remove them from the board of the listed property investor and developer at an extraordinary shareholders’ meeting on July 7. Hawke Investment Corp, Ltd, said that as a major shareholder it had requisitioned the meeting to remove Mr Ronald G. Greedus and Mr Gary L. Hislop under section 187 of the Companies Act 1955, in order to “stabilise the board’s structure and remove elements of friction.” In a statement to the Stock Exchange, Hawke said it now held a controlling interest after agreeing to buy Arahi shares from the interests of Messrs Alexander and

Poelman, who had been the company’s two largest shareholders. A “trend of differences had arisen between board members” in their management of Arahi, to the extent that Hawke believed shareholders’ interests were being prejudiced, the statement said. Hawke said it was important for, the board of any public company to work together as a team if the company was to progress. “Recent frustrations in this respect have indicated a real necessity to restructure the board to re-establish harmony and satisfactory working arrangements that are in the interests of the shareholders as a whole”. Hawke said it and the Arahi directors aside

from Messrs Hislop and Greedus believed the pair also needed to urgently attend to the affairs of Citifarfn Corp, Ltd, in which they held a substantial interest, and to

other business activities. That need was such that a “possible conflict of interest and inability to contribute fully to the affairs of Arahi will arise,” the statement said.