Fleetwood moves against board spill

Struggling RV and accommodation business Fleetwood Corporation has made a pre-emptive move to avoid a board spill, after a major shareholder took steps to call a general meeting.

Perth-based Fleetwood released a statement to the ASX this afternoon, warning that a substantial shareholder had requested a copy of the company’s share register and intended to call a meeting.

The company said it was unlikely to support any resolutions put forward at a meeting, unless there was engagement with the board.

The news comes after the company released an earnings update earlier this month, flagging subdued market conditions for its caravan manufacturing business.

In today’s announcement, Fleetwood said it planned to deal with the poor performance of its caravan business.

“The board does not intend to allow continued losses from caravan manufacturing  to undermine the strength and growth potential of Fleetwood,” the company said.

Fleetwood said the major shareholder had previously nominated someone to be considered for appointment to the board.

The company also said the shareholder had previously declined an offer to assist Fleetwood in the search process for new directors.

According to the company’s 2017 annual report, former managing director Greg Tate has a 10.79 per cent stake in the company.

Today's announcement adds to a string of board room issues, which included a general meeting called in May last year to amend the company's constitution.

That request was made by Mercantile Investment Company and Sandon Capital Activist. 

A new constitution was adopted following the meeting. 

About 20 per cent of shareholder voted against the reappointment of chair Phillip Campbell at the last annual meeting in November, while approximately 25 per cent of shareholders also voted against the issue of shares to managing director Brad Denison.