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Price fails in his attempt to oust Boon from PaperlinX chair

Friday, 23 March 2012
By Print21

Shareholders unite behind chairman Boon in rejecting Andrew Price’s bid to take control of the company at an EGM in Melbourne this morning.

At a tense and divisive meeting the shareholders of PaperlinX, the international paper merchant, rejected Andrew Price’s bid to remove Harry Boon from the chairmanship of the board. As it became apparent that Price did not have the numbers to win the resolution appointing him to the board was never even put to the meeting. Instead the meeting voted on a resolution to remove Boon, with a tight 51.84 per cent voting to retain the chairman and 48.16 per cent in favour of his removal.

The verdict brings to an end the extraordinary saga that has fascinated the industry and the corporate world for months. It leaves Price (pictured) with 30 million shares in the company but with little prospect of parlaying that into management real estate.

The bitter campaign became personal and potentially libellous since it was launched in February. It drew plenty of fire from the Paperlinx Sux website set up by disgruntled hybrid investors. The verdict now leaves current management free to continue its strategy to reorganise the paper merchant. In a statement it said, The Board will continue with its previously stated strategy of restructuring PaperlinX with the objective of restoring the Company to a sustainable and profitable footing. While Price has said he does not intend to challenge again in the near future, it would be rash to draw a line under the action just yet.

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