Listed financial services firm Dorchester Pacific is in a spin after its chairman and long-serving director were voted off the board.
At the firm's annual meeting in Auckland, investors voted against the re-election of chairman Murray Radford and director Sir William Birch, while Peter Drummond, nominated as an independent director
by 14 per cent shareholder Bridgecorp, succeeded.
Dorchester managing director Brent King said the board would meet to consider the "next stage".
"It's fair to say most people are surprised and I am very disappointed," Mr King told the Dominion Post.
A block of three: Bridgecorp, 19.8 per cent shareholder Hugh Green Investments and "Wellington instigator" Stephen Underwood voted for change.
Mr King said their aspirations were unknown. Mr Radford had been on Dorchester's board for 12 years and Sir William four.
Earlier, Bridgecorp managing director Rod Petricevic, who controversially bought its Dorchester stake from Mr King last year, demanded polls be taken to count the votes.
As the company had three major shareholders, a show of hands would not give a clear picture, Mr Petricevic said. He refused to say which way Bridgecorp would vote.
Shareholders Association chairman Bruce Sheppard entered the fray, suggesting a poll also be taken on Mr Drummond's vote. In April, Bridgecorp tried unsuccessfully to have its finance director, Eric O'Sullivan elected to Dorchester's board in a move opposed by Dorchester.
"You have a chance to dispel once and for all Rod, that he (Mr Drummond) is a representative of you. Otherwise we will accept him for what he is. Act two in a two-act play," Mr Sheppard said to applause from fellow shareholders.
Mr Petricevic would only say Mr Drummond's nomination had board support.
He said Dorchester had no plan to achieve Mr King's ambition of raising profit fivefold within five years and had no direction.
"The chief executive has signalled his intention by selling", Mr Petricevic said.
Asked if Bridgecorp had plans to increase its stake, a smiling Mr Petricevic said: "That's a decision we've got to make".
Shares in Dorchester last traded yesterday at $2.44 against a year high of $2.96 and a low of $2.25.
- NZPA
