GGRAsia – Stuart McGregor, David Green out of Donaco’s board

Stuart McGregor, David Green out of Donaco’s board

Dec 03, 2019 Newsdesk Latest News, Rest of Asia, Top of the deck

Trading in the shares of Australia-listed boutique casino operator Donaco International Ltd has been suspended after a board rejig at the firm’s annual general meeting (AGM) on Monday.

The company – an operator of casinos in Indochina – said in a filing that a motion to elect gaming law expert David Green as a board director “was lost as an ordinary resolution on a poll”. Mr Green had been appointed as an independent non-executive director of the company in April. The firm said the AGM also failed to elect Yugo Kinoshita as a board member.

Donaco said additionally that shareholders had approved a motion to remove chairman Stuart McGregor as a director of the company.

The casino operator said that Leo Chan Yan Ho and Kurkye Wong – representatives of Argyle Street Management Ltd, an institutional investor – have been elected to the board.

“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,” said Donaco in Monday’s filing.

The company said in a separate filing that Roderick John Sutton has joined its board as an independent non-executive director. Mr Sutton is described in the filing has having more than 25 years of experience in business advisory and management. He is currently a special advisor to the Asia Pacific region for FTI Consulting, a professional services and consulting business listed on the New York Stock Exchange, according to the statement.

Donaco’s board now consists of three directors, and the trading in its shares has been suspended pending the “appointment of sufficient directors” as required by Australia’s Corporations Act, which demands a minimum of two Australian resident directors.

“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,” said Donaco.

The motion to elect two other shareholders – that had called to remove all the directors – and three people nominated by them to the board was withdrawn from Monday’s AGM.

The vote followed the announcement that Ben Reichel – who had been an executive director of Donaco – had chosen not to seek re-election. Mr Reichel remains as a Donaco executive, in the roles of general counsel and company secretary.

The board’s intent to change the group’s name to Pan Asian Leisure Ltd was also turndown by shareholders at Monday’s meeting.