01/10/2013 - 15:10

Aphrodite Gold directors resign

01/10/2013 - 15:10

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Aphrodite Gold's former chief executive and former managing director have each resigned as directors of the company ahead of a planned shareholder meeting today.

Aphrodite Gold's former chief executive and former managing director have each resigned as directors of the company ahead of a planned shareholder meeting today.

Former chief executive Wayne Ryder and former managing director Leon Reisgys tendered their resignations last week in what they said was an attempt to minimise negative publicity towards the company.

The pair said they were proud of their work in developing the Aphrodite gold project and intended to commence legal proceedings against the company's new management to negotiate settlement of their termination entitlements.

Aphrodite's board had intended to seek the support of shareholders at a general meeting in Melbourne today to have the pair removed from the company.

In a letter to shareholders, newly-appointed executive chairman and acting chief executive Peter Buttigieg said the board had taken a view that the former executives had "displayed an unacceptable inability in their core activity and responsibility of maintaining sufficient funding for the company" and had "mismanaged cash reserves to such an extent that it required immediate affirmative action by the board to re-stabilise the company's financial position."

The board had asked for the directors to resign but each of them had refused.

Mr Buttgieg said the board was investigating a number of issues, including payments made to Mr Ryder and Mr Reisgys without the approval of the board.

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