QBiotics chief executive and chairman resign after failed bid to oust founders
A boardroom coup at a Brisbane biotech has spectacularly backfired, with the CEO and chairman resigning after a shareholder revolt.
The chief executive and chairman of biotech firm QBiotics Group have fallen on their swords after a bid to remove the two founders of the company from the board failed.
In what is another twist in a spirited boardroom power play, experienced non-executive chairman Mark Fladrich and chief executive Stephen Doyle have resigned in the wake of a firey AGM last month.
Angry shareholders defeated a bid to change the constitution that guaranteed the Board seats of Dr Paul Reddell and Dr Victoria Gordon (illustrated) who founded the company 25 years ago.
They took aim at Fladrich and Doyle – who both joined last year – over their bid to “strengthen investor confidence” by ending the board seat guarantee for the founders.
At the AGM, shareholders called for their resignations with a major flash point being the recent sacking of Reddell as chief scientific officer for alleged “serious misconduct” which he vehemently denies.
Gordon, who resigned as CEO last year, has not been accused of any misconduct and there is no suggestion of wrongdoing on her part.
Newly elected director Sergio Duchini also resigned, leaving Gordon, Reddell and deputy chairman David Phillips remaining on the board.
The AGM revealed that the outgoing directors held differing views on governance reform, financial discipline, founder accountability, pathways to registration, and capital management including readiness for a potential IPO or partnerships.
“In light of this outcome, and given that the changes they had been advocating did not have unequivocal support, the outgoing directors concluded they could no longer continue in their roles,” a QBiotics release said on Thursday.
Over the last few years, a number of high-profile directors have resigned for various reasons including leading figures in business: Hamish Corlett, Professor Bruce Robinson, Andrew Denver, Neville Mitchell, Steven Ogbourne, Nicholas Moore and Roderic Holliday-Smith.
Toowong-based QBiotics researches the natural environment to find treatments for cancer and wound healing.
A major issue for the anti-founders camp was the fact that there has been more than $250m invested in the company which they claim for little tangible progress.
However, Gordon told Citybeat that the AGM showed overwhelming support for her and Reddell and backed their vision for the company.
“We believe we are in the best position to move forward with clarity and purpose and alignment,” she says.
“There had been different views about the direction the company should be taking and Paul and I were very concerned and did not support that,” she said.
“QBiotics has a deep pipeline of products and realising its value I think is very important, rather than narrowing it down which we don’t believe will realise the intrinsic value of the company.”
Gordon says next week the remaining board members will decide about the makeup of the new look executive team and board.
“We will need to get on with the job. Our first focus is moving towards the commercialisation phase of the company and that will mean partnering and moving forward to an eventual IPO and public listing,” she says.
Gordon says at this stage she had made no decision on whether she will return as CEO.
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Originally published as QBiotics chief executive and chairman resign after failed bid to oust founders
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