Smiles Inclusive: Rebel dentists Dr John Camacho and Dr Arthur Walsh lose key votes at AGM

Dr John Camacho and Dr Arthur Walsh have failed to convince Smiles Inclusive shareholders to vote down fundraising measures at this morning’s AGM.

DR JOHN Camacho and Dr Arthur Walsh have failed to convince shareholders to vote down key capital raising measures put forward at this morning’s annual meeting in Brisbane.

Smiles held just its second AGM this morning since listing in April last year from an amalgamation of 52 practices.

Since listing the company, now headed by CEO Tony McCormack, has been bedevilled by problems including profit downgrades, a falling share price, boardroom infighting, legal problems and the threat of class action lawsuits.

Dr Camacho and Dr Walsh wrote to shareholders this month urging them to abstain on two resolutions seeking approval for the adoption of the remuneration report and the election of Peter Fuller as director.

Dr John Camacho. (AAP Image/Richard Waugh)

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They also asked shareholders to vote against a resolution ratifying the issue of shares for a recent capital raising (resolution three) and another seeking approval for a future share issue (resolution four).

“We are writing to you seeking your vote to bring an end to Smiles’ habit of continually asking Smiles shareholders for more money,” the pair wrote. “Instead, we propose the board needs to fix the base business. Rather than taking out another credit card (shareholders’ money), the board needs to stop spending money it does not have.”

The pair sent shareholders proxy forms with their preferences for voting already marked.

However, results released this afternoon show resolution three was passed with 81.89 per cent of securities voted in favour and 16.30 per cent against.

Former CEO Mike Timoney was at today’s meeting. Pic Annette Dew

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For resolution four it was a similar story with 81.89 per cent for and 18.11 per cent against.

The first two resolutions, regarding the remuneration report and election of Peter Fuller, were also passed.

Before the vote chairman David Usasz told the small group of shareholders who attended, which included ex-CEO Mike Timoney, that the year had been “extremely difficult”.

He said without the support of Smiles’ banker National Australia Bank, the company would have failed.

“We started the business by purchasing more than 50 practices and tried to integrate and rebrand all the businesses immediately,” he said.

Smiles Inclusive Ltd's boardroom saga has been like pulling teeth. Photo: iStock

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“That proved too difficult and created problems for all our joint venture partners.”

Mr Usasz said they recognised “big changes” were needed for the survival of the company.

He referenced an acrimonious meeting in May where Mr Timoney was dumped as a director of the company he founded and then proceeded to allege major discrepancies with the numbers.

The allegations were refuted by Smiles and never proven.

Mr Usasz also told shareholders he takes responsibility for not changing the company’s direction sooner.

Smiles Inclusive chair David Asasz has taken responsibility for not changing the direction of the company sooner. (AAP Image/Richard Waugh)

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“I am the only senior person that has been with the business prior to the float,” he said.

“I promise I shall continue to try my best, together with your directors to work with our senior team to create a successful business.”

Meanwhile, Smiles announced this morning it has resolved legal issues with joint-venture partner Australian Aged Dental Care to do with the closure of the Smiles Onsite mobile business in October last year. Shares rose immediately in response to the news and at 1pm (Qld time) were 13.6 per cent higher at 5¢.

Mr McCormack said the company is now focused on ensuring the business is back to “full operation” by February next year.

AADC lawyer Cabral Douglas, the former COO of Smiles Onsite, said all legal matters before the courts had been settled and a plan put in place to grow the business nationwide.
“The mobile clinics have been returned to base, a new general manager has been appointed and key personnel engaged to drive the process forward,” he said.

“We believe that the mobile dentistry division of the Smiles Inclusive business will be the catalyst for significant growth and profitability once the company is properly run and all of the key stakeholders are appropriately engaged, which is well underway.”

The Sydney-based mobile division has two businesses with a combined fleet of five three-chair mobile clinics operating from trailers, two one-chair trucks and 14 portable chairs operating in NSW and Victoria.