PaperlinX chairman Harry Boon has survived a bid for his removal by the company’s biggest shareholder.
“As a result of voting at today’s general meeting of shareholders, there has been no change in the composition of board of directors,” PaperlinX said in a statement.
Orbis Investment Management, the company’s biggest shareholder, managing 18.29% of PaperlinX, supported challenger Andrew Price’s bid for the chairmanship, the Australian Financial Review reported today.
Orbis CEO Simon Marais said he had nothing against Boon.
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“We felt the CEO is not the right person for the role … but we can’t replace him. The shareholders only get to vote on the board,” Marais told LeadingCompany today.
The margin was close: 51.84% of shareholders voted against a resolution to remove Boon as a director of PaperlinX, and 48.16% voted in favour.
Boon successfully transformed debt-ridden Pacific Dunlop into condom and glove-making success story Ansell, and has been chairman of the paper giant for the last four years.
Price is a successful paper executive who has agitated for change – even putting his money where his mouth is by personally buying $480,000 worth of shares.
“We are here today because I believe a great company is being destroyed,” Price told AAP. “I have listened to excuses year after year.”
Paperlinx is a Melbourne-based, global paper giant operating all over the world. Its share price has plunged from $4 down to just 12 cents in the last seven years, prompting many shareholders to call for urgent change.