M&G Funds Management is pushing for the return of the oil and gas company's CEO, who resigned a month ago. Photo: Jessica Shapiro
A LONDON-based funds manager that controls about 14 per cent of the shares in Nexus Energy is planning to requisition an extraordinary meeting of shareholders to seek the removal of three directors, including the executive chairman, Michael Fowler.
The move comes amid concern about the circumstances surrounding Richard Cottee's decision four weeks ago to quit his position as chief executive of the oil and gas development company.
Mr Cottee yesterday told BusinessDay that three weeks ago M&G Funds Management urged him to return to Nexus as chief executive.
Mr Cottee said he was prepared to return to Nexus but only if he had the support of shareholders and if he had confidence in the board.
BusinessDay this week revealed Mr Cottee's resignation was triggered by his concern that Nexus's board was trying to ''second-guess'' management decisions and push too hard to get its way on deals at the risk of having them fall over.
Mr Cottee said he gave M&G four criteria for his return: that he had to have confidence in the board, that the board had to have confidence in him, that there had to be what he called ''normal'' corporate governance at the company, and that he had to be convinced that a return to Nexus would be in the best interests of shareholders.
''M&G have advised me in writing they have instructed their custodians to requisition an extraordinary meeting whereby the three 'executive' directors will be removed,'' Mr Cottee told BusinessDay yesterday.
Mr Cottee said these directors were Mr Fowler, Michael Arnett and Ian Boserio. Mr Fowler and Mr Arnett are due to face re-election at the company's annual meeting.
Mr Cottee said he had received a ''tsunami'' of support from shareholders after publication of the BusinessDay article. He said he had fielded emails and phone calls from shareholders yesterday which, by his estimations, indicated he had garnered the support of at least one-third of the institutions that participated in a recent capital raising.
A spokesman for Nexus said the company had not received anything so far from M&G Funds and had not received any requisition for a meeting. He said the company would not comment further.
Mr Cottee claims his resignation was triggered by a dispute about a deal that would have assured Nexus of closing its financing for the development of the Crux oil and gas field in the Browse Basin.
He claimed the dispute centred on whether Nexus would assume 100 per cent of the commitment for the financing of an exploration well at Echuca Shoals.
Nexus was one of the most heavily traded shares on the Australian stock exchange yesterday as 43.9 million shares changed hands. The stock edged 1¢ higher to 18¢.
