PharmAust board rebels force a poll

A group of dissident PharmAust Ltd shareholders forced the company to hold a formal poll after their push to replace the existing board was narrowly defeated on a show of hands at today's general meeting.

Resolutions proposing the appointment of Peter Remta, Brian John and Owen Coote as directors, and calling for the removal of current directors Bryant McLarty, Simon Owen and Henry Gulev were put to the meeting.

The result of these resolutions, on a show of hands, was tied with 13 votes each way.

David Sanders, who was appointed by the board to chair the meeting, exercised his right to vote against the resolutions, which meant the incumbent board retained its position.

However the shareholders pushing for change demanded a poll, which resulted in the meeting being adjourned until 4.00pm today.

The poll showed that 84 million shares were voted in favour of the resolutions and 112.9 million shares were voted against, meaning the current directors will be retained.

The meeting followed a tumultuous period for Pharmaust, which has been forced to seek additional capital at a deeply discounted price.

Its decision to raise funds via a rights issue rather than a convertible note issue via Chimaera Capital Ltd triggered the resignation of US-based managing director Paul D'Sylva earlier this year.

PharmAust's board has previously stated that attempts to assume control of the company commenced upon Dr D'Sylva's resignation.

The Federal Court earlier this month dismissed an interlocutory injunction sought by Chimaera Capital against PharmAust's rights issue.

The rights issue was funded by eastern seaboard securities dealer Cardrona Captial Pty Ltd.