Ezeatm, former CEO at odds

12/06/2013 - 12:06

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Ezeatm co-founders Chad (L) and Todd Zani.

Former Ezeatm boss Todd Zani has challenged the ATM distributor's claim that he has been ousted from its board of directors.

The company said earlier this month it had terminated Mr Zani's contract as chief executive, ahead of flagging an earnings downgrade yesterday.

The board includes Mr Zani's brother, Chad, who was a co-founder of the company.

In the earnings downgrade announcement, Ezeatm said: "Upon the termination of the Executive Service agreement with Mr Todd Zani, under the terms of the Company's constitution, Mr Todd Zani has ceased to be a director of the company".

A representative for Todd Zani, however, provided Business News with a statement late last night that rebutted that claim.

"Todd Zani has neither resigned as a director nor has been removed by any vote of shareholders," his representative said.

The spokesperson referenced the Australian Securities and Investment Commission publication, Removal of directors of public companies, that says only shareholders of a public company, and not directors, can remove fellow directors.

Subsequently, Todd Zani claims the resolution that purports to remove him as director is void and has formally requested that Ezeatm retract the statement and advise ASIC accordingly.

Ezeatm is sticking to its guns, releasing a final director's interest notice this morning that states that Todd Zani ceased to be a director on May 31 this year.

Todd Zani has also said another announcement made by Ezeatm yesterday, saying he had requested a meeting of the company's shareholders to remove three directors, was misleading.

The three directors Ezeatm claims Todd Zani wishes to remove are Chad Zani, Mark Jones and Douglas Rose.

Todd Zani's representative said he is considering various legal options available to him but has not formally or informally called for a meeting of Ezeatm shareholders.

Ezeatm declined to comment when contacted by Business News.

Ezeatm said the downgrade of its earnings was due to the deployment of machines into unprofitable locations and a significant increase in overhead costs.

Ezeatm also listed an additional factor in the downgrade was a $256,000 act of fraud committed by an employee of a third party cash bailment contractor the company used.

The company said it was assessing its legal options in regards to the allegation of fraud.

In response to the earnings reduction, Ezeatm's board have commissioned a strategic review from KPMG, with former KPMG partner Robert Kelly appointed as interim financial officer.

Ezeatm distributes ATMs in Australia and Asia and its stock last traded at 33 cents on May 24.

It previously reported a net loss of $1.9 million for the half year period ending December last year.

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