Shareholders' Assoc challenge Rakon leaders
The Shareholder's Association is demanding an end to the tenure of Rakon chairman Bryan Mogridge and director Darren Robinson.
Rakon, a producer of crystal components for smartphones and weapon systems, has struggled to deliver adequate returns and reported a loss of $32.8 million for the year to June 30.
Shareholders' Association chairman John Hawkins said the association would be voting against the re-appointment of Mogridge and Darren Robinson at the forthcoming annual meeting in Auckland on September 6.
Shareholders had lost confidence in Mogridge's leadership after years of disappointing results, he said.
"The reality is that the grand strategy championed by Mr Mogridge is in tatters. As a result, shareholders face having to write off over $30m."
Rakon had been one of the worst performers on the stock exchange, he said, and it was time for Mogridge to go.
Mogridge said the association was entitled to vote as it pleased.
"It's over to them," he said.
Hawkins said the Robinson family's board representation was too large given its 23 per cent shareholding and Darren Robinson's executive position as sales manager compromised his role on the board.
Rakon founder Warren Robinson remains on the board as a director, while his son Brent Robinson serves as managing director.
The meeting will also consider a deal to sell 80 per cent of Rakon's Chinese factory.
Hawkins said the association would vote in favour of the transaction.
Rakon shares were unchanged yesterday at 22c, valuing the company at $42m.