Sacked CEO’s letter sends a shiver through Praemium

Praemium directors, led by former banker Greg Camm, are likely to be having an unscheduled board meeting today after last night receiving a legal missive from the former chief executive they sacked three weeks ago.

Michael Ohanessian was ousted on February 21, eight days after delivering a record first-half profit for the wealth management service provider.

He had led the company for six years before his removal, which coincided with Mr Camm becoming the executive chairman.

The Melbourne-based Mr Ohanessian has appointed Arnold Bloch Leibler partner Jeremy Leibler to act on his behalf and the well-known firm delivered a letter to the board yesterday to outline that action was in progress.

A number of investors, led by Paradice Investment Management, Australian Ethical Investment and the Abercrombie Group have formed a bloc and intend to push for change.

The three firms, combined with Mr Ohanessian, hold about 17 per cent of Praemium’s total stock and have delivered a vote of no confidence in the company’s board. The group says the Praemium board has to put the company into an effective ‘‘caretaker mode’’ that does not permit any major decisions while a push for the board to be removed is under way.

An official requisition will be delivered today that asks the Praemium directors to call an extraordinary general meeting and elect new directors.

The company will have two months to meet the demand and hold the meeting.

It will be proposed that professional company director Barry Lewin be appointed chairman, alongside Ellerston Capital independent director Stuart Robertson and Daniel Lipshut.

On the Praemium board with Mr Camm, who replaced long-time chairman Bruce Loveday last year, are Andre Carstens, Robert Edgley and Peter Mahler.

The shareholder bloc has called on Praemium to call off Egon Zehnder’s international search for a new chief executive.

Mr Ohanessian’s removal in February was a surprise in the investment platform industry because many believed he had effectively revived the company.

The company’s records show Praemium’s revenue rose from $13 million to $30m during the former chief executive’s six-year reign. The growth meant the company’s earnings margin, which was -39 per cent, hit a positive 15.1 per cent by the end of 2016. The share price also rose from 13c to 44.5c but has fallen to 34c since his dismissal.

Speaking of shake-ups involving prominent lawyers, Molopo Energy has been served notice by its largest shareholder Keybridge Capital that it wants a new board put in place.

In a statement to the ASX, Keybridge said the founder of top law firm Antanaskovic Hartnell Tony Hartnell, the former chairman of the Australian Securities Commission and Racing NSW should be appointed to Molopo. It has also proposed former Molopo director David Sanders return to the board with William Johnson, the current managing director of Strike Resources.

Keybridge holds 19.34 per cent of Molopo and said the action to remove the directors was the result of the company not engaging in a “constructive dialogue” and refusing Keybridge a board seat.