Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) has told investors that deposing the company’s current board would remove “critical sector and business knowledge, intellectual property and relationships”.
Moreover, Tirupati’s management – in a statement responding to a requisition to replace the board – said that the proposed new team has “neither the sector skills nor experience to navigate the complex and specialist graphite sector”.
The proposed changes “would be value destructive to the company's prospects and fail to represent appointments of wholly independent directors” it added.
Previously, shareholders with the backing of 5.8% of the company’s shares issued a requisition letter calling for the removal of directors Shishir Poddar, Puruvi Poddar and Alastair Bath to instead install Mark Rollins, Leo Koot, Isabel de Salis and Murat Dogan Erden to the company.
In a formal response, issued today, the company’s management recommended that shareholders vote against the proposals when an EGM is held.
Tirupati’s management, meanwhile, said: “The company recognises that its current board structure and composition needs addressing, to ensure it returns to QCA compliance with the appointment of wholly independent directors as soon as practically possible.
“The board is taking urgent steps to enhance this and is seeking the appointment of a new Non-Executive Chair, Non-Executive Directors, and a CFO.
“The specialist nature of the graphite sector has meant that the company transacts with related parties, achieved on highly competitive terms, which have been instrumental in shaping the company's development.
“The company has successfully grown with minimal cash resources.
“It is making considerable progress in addressing the working capital situation which will enable it to successfully expand productivity and profitability.
“The company remains wholly committed to building a downstream business; to date, it has not been able to undertake this due to the impasse to the agreement with PranaGraf faced by the parties for reasons wholly beyond their control and, accordingly, the company has not deployed capital to attempt to do so.”