Ellyard to step down from Key Petroleum

Key Petroleum's chairman Ted Ellyard and non-executive director Richard O'Shannassy have agreed to resign after a group of shareholders requested a general meeting to restructure the company's board.

The shareholders wanted Mr Ellyard, finance director Dennis Wilkins and Mr O'Shannassy removed from the board and replaced with two new directors Jitto Arulampalum and Frank Cannavo.

The shareholders have issued a 249D notice.

But in a statement Key Petroleum said Mr Ellyard and Mr Shannassy have already agreed to resign after discussions with the requisitioning shareholders who said they would support future capital raisings by the company.

However the current board is pushing for Mr Wilkins to remain a director.

"Both Richard O'Shannassy and I have decided to step down as Directors of the Company to facilitate a change to the Board, largely in line with the wishes of the requisitioning shareholders, and also some other large shareholders, who collectively have indicated that they will support future capital raisings in the company," said Mr Ellyard.

"However, I believe that the continuing services of Mr Wilkins as a Director of the Company is desirable to maintain an experienced and balanced Board going forward and that a decision regarding his current tenure as a director should be one for all shareholders to decide," he said.