Central Petroleum shareholder questions CEO’s departure

A FEW questions are being asked about the departure of well-known mining executive Richard Cottee as chief executive of Brisbane gas company Central Petroleum.

Richard Cottee, chief executive of Brisbane gas company Central Petroleum.

A FEW questions are being asked about the departure of well-known mining executive Richard Cottee as chief executive of Brisbane gas company Central Petroleum.

The company told the ASX back in July that Cottee would cease employment with the company on January 31, noting it was a “retirement” and thanking him for his “passionate” service to the company. Now the company’s biggest shareholder, Troy Harry, claims Cottee was marched out the door after locking horns with the board, which is chaired by former Suncorp director Martin Kriewaldt.

Harry told your diarist yesterday that the board has not been upfront about the circumstances of Cottee’s departure, or who will replace the veteran mining operator. It is not the only complaint from Harry, who has just returned from a charity trek to Mt Everest Base Camp.

He also is concerned about the lack of communication between major shareholders like himself and the board. He says he was surprised Kriewaldt did not know who the top five shareholders of the company were when asked. “He said he didn’t need to as we treat all shareholders the same,” Harry says.

Harry also is miffed the board has little skin in the game, with directors Peter Moore, Sarah Ryan, Wrixon Gasteen and Kriewaldt, holding about 0.27 per cent of the company’s capital. Harry points out he owns almost 6 per cent, valued at about $5 million.

Cottee did not return phone calls yesterday seeking comment. Kriewaldt says Cottee’s departure followed a determination by the board that a change was needed and succession is always being discussed by boards.

He adds Cottee is on “gardening leave” until the end of January and a search is under way for his replacement. He says he is always prepared to meet with shareholders to discuss their concerns, including the issues raised by Harry. As to lack of skin in the game, Kriewaldt says he has more than a million shares, valued at about $100,000. It is all adding up to a very interesting Central Petroleum shareholders meeting next month.

BREAD AND CIRCUSES

ARE the comrades down at the Tattersall’s Club (aka Queen St Workers’ Club) about to revolt over the bread? A spy claims Tattersall’s is on a cost-cutting drive with the free bread rolls currently being served in the members’ dining room among the items on the hit list.

“The rolls they are now serving are stale,” says the spy. “We were told last week that these are the last of the rolls and they are being withdrawn from the menu to save costs.”

The spy also claims Tatts chocolates and cheese and bikkie platters in the members bar also are being withdrawn. Not so says a club spokesman, who is adamant free bread rolls, chocolates and cheese platters will remain. But given fears of cost-cutting maybe the proposal to allow women to become full members of the club cannot come soon enough?

EQUAL OPPORTUNITY

THE dreaded words “women members” are being whispered around Tattersall’s but they still can’t bring themselves to say it out aloud apparently. In a recent notice to members, Tattersall’s president Stuart Fraser points out that “equality policies” are preventing organisations from using the club and that many customers from government, business and not-for-profit organisations no longer use the club as a result of “equality policies”.

Fraser further notes that club supporters are keen to expand their “usage of the club if we can remove the barriers to do so”.

When City Beat translates that to plain English, we think that means ‘how about we let in some sheilas?’

SKY’S THE LIMIT

PUNCHED-UP investment manager Blue Sky’s stock market listed fund, the Blue Sky Alternatives Access Fund, has locked its stock in a trading halt while it thinks about its “strategy in relation to future investment activity”.

What’s that mean? Some market speculation ponders if the fund might seek to shut itself down and provide money back to investors. Or maybe the fund wants to rebadge away from the Blue Sky name or cease backing just Blue Sky-associated investments.

The brand is about as inspiring right now as Concorde or Blockbuster. The stock is stuck at 85¢, and last year was at $1.27.