Perth-based bank machine distributor Ezeatm has begun legal proceedings against its former boss and co-founder, Todd Zani, who was ousted from the company in June.
The action, which has been launched in the Supreme Court, arises from claims that Mr Zani breached his fiduciary and Corporations Act duties while at the helm of the company.
Ezeatm is seeking damages, equitable compensation or compensation under the Corporations Act.
The company also launched action against Mr Zani’s privately held companies, Ezetax Pty Ltd and TZ Motorsport Pty Ltd.
The claims allege a knowing involvement or receipt of funds by the companies as a result of Mr Zani’s alleged breaches.
“Whilst the total damages sought by the legal proceedings have not been quantified, the company believes that the amount is likely to be material,” Ezeatm said in a statement.
Mr Zani, who founded Ezeatm with his brother Chad, was replaced by current chief executive Doug Rose in June.
Mr Zani is seeking reappointment to the board and removal of most of its directors.
A statement released on behalf of Mr Zani today said he would defend vigorously any claims made against him or any related companies in the Supreme Court.
The statement said Mr Zani had made a number of offers to negotiate with Ezeatm, but the company had rebuffed those offers.
"Mr Zani is not aware exactly which transactions are being referred to by Ezeatm, but all transactions he was involvd in were either approved by the board of the company or were within his authority limits," the statement said.
According to the statement, the announcement by Ezeatm was a strategy to discredit and defame him prior to tomorrow's general meeting.
The company’s shares last traded at 26 cents, ahead of a trading halt on July 26.