Donaco International Ltd., the Australia-based operator of Asian casinos, has announced it will hold an extraordinary general meeting of shareholders after three of them called for the removal of board directors Joey and Ben Lim. The two are the grandsons of Genting founder Tan Sri Lim Goh Tong who set up Donaco for his grandsons.
In a May 27 filing to the Australian Securities Exchange, Donaco disclosed that it was on notice from shareholders Antonia Caroline Collopy and Spenceley Management Pty Ltd., a trustee for the Spenceley Family Trust and the Spenceley Family Superannuation. Together the shareholders called on the board to consider resolutions to remove the brothers.
According to CDC Gaming Reports, the shareholders took action after the Australian Takeovers Panel struck down the on-market acquisition of a 9.71 percent stake in Donaco by Asian investment firm Orchard Capital Partners because the company had already seized control over a 27.25 percent stake previously held by Joey Lim. Lim defaulted on a loan from OCP late last year.
On March 19, Lim was terminated as Donaco’s managing director and CEO “with immediate effect” following a leave of absence to deal with “health and personal matters.” At that point, Ben Lim stepped in as acting CEO.
CDC noted that “the Spenceley in question” is James Spenceley, chairman of fellow Southeast Asian casino operator Silver Heritage Group, which runs the Tiger Palace Resort in Nepal. Silver Heritage put the resort on the market in April.
Under ASE listing rules, companies must call a meeting to vote on any resolution requested by shareholders representing 5 percent or more of a company. The meeting must also be called within 21 days of the request being issued and held within two months.
