FRL advises against former CEO's re-appointment to board

The board of Belmont-based diversified financial services provider Financial Resources Ltd has advised its shareholders to vote against the re-appointment to the board of former chief executive Barry Samuels, saying it would be detrimental to the company.

Mr Samuels resigned as chief executive on November 30 last year, and as a director on January 2, due to ill health.

His resignation came after the company garnered headlines after substantial shareholder Michael van Rens defaulted on several loans from the company's wholly owned subsidiary, FRL (WA) Ltd.

The company has since recouped Mr van Rens' 8.2 per cent shareholding after reaching a settlement, which also involved a cash payment.

Financial Resources also announced the resignation of Keith Robertson from its board, to be replaced by FRL company secretary Raymond Andersen.

The full text of a company announcement is pasted below

Financial Resources Limited (ASX Code: FRL) advises the resignation of Mr Keith Robertson as a director of Financial Resources Limited and it's subsidiary and associated companies with effect from Monday, 30 April 2007.

The Board would like to thank Mr Robertson for his significant contribution to the Board and notes that his resignation is due to his desire to devote more of his time to his primary business interests.

The Board also advises the appointment of Mr Raymond Leslie Andersen as a director of Financial Resources Limited and it's subsidiary and associated companies with effect from Monday, 7 May 2007. Mr Andersen is currently the Company Secretary of FRL and he will continue in that role in conjunction with the requirements of his position as a director of FRL.

Requisition of Shareholder Meeting

The Board of FRL has received a notice requisitioning a meeting of shareholders in accordance with section 249F of the Corporations Act to be held on Friday, 8 June 2007. The purpose of the meeting is to remove existing directors, Mr Ray Turner and Mr John Bryant, as well as Mr Keith Robertson who resigned as a director prior to the notice to shareholders being sent to shareholders.

The notice of meeting provides no reasons for seeking the removal of Mr Turner, Mr Bryant and Mr Robertson or for appointing as directors the three persons nominated.

The proposed nominee directors include Mr Barry Samuels, a former Managing Director of FRL who resigned for personal and health reasons in late December 2006.

The Board of Financial Resources believes that the re-appointment of Mr Samuels would be detrimental to the interests of shareholders and the company and urges shareholders to VOTE AGAINST the resolution seeking to appoint Mr Samuels and his consortium to the Board.

The Board will provide shareholders with a further response in relation to the proposed notice and also information in respect to the company's current activities and future plans shortly.