Emerson Stewart Group chairman Steven Cole and non-executive director James Cullen have resigned, shortly after the company completed its $28 million acquisition of contractor OTOC Group
Emerson Stewart said in a statement the resignations were effective immediately.
"The board extends its gratitude to both Steven and James for their efforts, support and guidance from the company's initial public offering in 2008," the company statement said.
Mr Cole said he had given his full explanation to the board of directors, but would not be drawn further as to the reasons behind his resignation.
Emerson Stewart managing director Dario Amara said he was as "surprised as anyone" regarding the departures, but said the executives reasons for leaving were private and would not be disclosed.
The shock announcement comes just three days after the company concluded its merger with OTOC and completed an $11.9 million share placement.
Under the merger transaction, OTOC Group managing director Adam Lamond will become the largest single shareholder of Emerson Stewart, with an estimated 21.4 per cent stake, and will also join the company's board of directors.
Collectively, the six shareholders in OTOC will hold a 42 per cent stake in Emerson Stewart.
Also today, Emerson Stewart said it would issue a supplementary prospectus relating to its $5.5 million entitlement issue, which is now underway.
An annual general meeting for the group will be held on November 23.
At close of trade today, Emerson Stewart shares were steady at 20 cents.
