Donaco International Ltd. is undergoing a major reform at the very top of the list, a move which follows an already chaotic year. Just yesterday, it was reported that board member Ben Reichel, who was also the company’s General Counsel and Company Secretary, had decided to resign from his position on the board after seven years and more exits are coming now. Due to all the changes, Donaco trading has been suspended temporarily on the Australian Securities Exchange.
In a filing with the exchange yesterday, Donaco announced that, because of a vote at its annual general meeting (AGM) of shareholders, David Green and Yugo Kinoshita will not be among the company’s board of directors. This past April, Green had just been appointed to the board as a non-executive director; however, the gaming law veteran didn’t gain enough support to make his appointment permanent when the matter was put to a vote. Kinoshita was added as a candidate for probable inclusion; however, was rejected too.
Shareholders are looking to make changes even more than what has already been witnessed this year with the removal of the Joey Lim, the company’s founder and former CEO, and Ben Lim, his brother, who served as interim CEO until earlier this year. Apart from these departures, company chairman Stuart McGregor will be removed as a Donaco director as well.
As informed by Calvinayre.com, in its filing, the company added, “The board notes that as a result of today’s AGM, three independent non-executive directors have been removed from the board. The board accepts the decision of the meeting, and wishes the new board every success in serving the best interests of all shareholders.”
However, the exits won’t be leaving long-term voids on the board. Donaco indicated that a number of new individuals will be filling in their shoes after shareholder approval, including Leo Chan Yan Ho and Kurkye Wong from Argyle Street Management, Ltd. and Roderick John Sutton. Sutton, who is a special advisor for NYSE-listed FTI Consulting, will be appointed as a non-executive director.
As a result of all of the changes, Donaco had to temporarily stop trading because the company currently doesn’t meet the policies of the Australian Corporations Act. That act entails any Australia-listed company to have at least two directors who live in Australia, and Donaco expects to have this issue solved quickly. It explained, “The board is seeking to recruit two more independent non-executive directors based in Australia in the near future. To this end, the board is currently in advanced discussions with a number of quality candidates, including candidates with experience in casino gaming in Asia.”