The misfortune surrounding Bellamy's Australia highlights what can go wrong when a small private company grows up too fast and mismanages what can be complex relationships between management and the board.

The Launceston-based infant milk formula group was forced to sacrifice its chief executive Laura McBain in an effort to restore confidence in the company as it prepares to defend itself against three potential class action lawsuits and a bid by rebel shareholders to turf out four directors.