Ambush at AGM leaves Genetic Tech without chairman and CEO
BY: CRITERION From: The Australian November 28, 2012 12:00AM
Source: The Australian
SMALL-CAP annual general meetings are usually breezy affairs with plenty of back-slapping, a few cursory questions followed by refreshments.
In the case of Genetic Technologies (GTG, 8.7c), an ambush loomed and by the end of the day the genetic tester would be devoid of its chairman, chief executive and two other directors.
While we gather he didn't speak at the meeting, Genetic founder Mervyn Jacobson used his 29 per cent stake to block the re-election of chairman Mel Bridges, who has had a 30-year healthcare career.
A motion to re-elect fellow director Huw Jones also failed. Shortly after, chief executive Paul MacLeman and director Greg Brown (who was re-elected) resigned, as did legal and corporate development head David Sparling.
After the meet, Bridges said it was "regrettable that a company with the potential of GTG was unable to reach middle ground with its major shareholder".
Genetic's sometimes controversial business looked to be headed in the right direction, with strong take-up of its Brevagen product in the US. But yesterday's meet was one Jacobson production that should never have seen the limelight.
Despite the rejoicing by shareholders, it is a surprise that the POS Greg Brown AKA master of the destruction of IPD (ASX listed ImpediMed) and Bridges desciple was re-elected (let's keep the blithering idiot for grins). Stop caring for the mentally impaired - this is business.
When the going gets tough the CEO resigns instead of fighting tooth and nail to support whatever he believes he should be doing ie looks after the company.The company might be better without him.I think the share price may improve with a better executive team with vision.The board must acknowledge that it is the shareholders who own the company and the board is the caretaker and its role is to look after the interests of the company but not themselves. Good on you all shareholders who voted for the interests of the company ie yourselves, the shareholders.I have lost too much money on this company because of the incompetence of the the management.
I think we need a new CEO who would be able to steer the company into prominence. With an excellent product like Brevagen and the the depressing share price is just a poor reflection the performance of the executive team.Brevagen should be advertised from the roof tops as it is a life saving test like Bracanalysis of Myriad Gennetics.I don't think the senior management has done enough to promote the excellent product the company has.Let's hope a more competent new management may be able to carry the product to where it should be ie more sales and benefits to potential breast cancer sufferers.