Defeated Timoney boxing on
Smiles founder refuses to accept vote
DUMPED Smiles Inclusive CEO Mike Timoney has refused to lay down and accept defeat after close to two-thirds of shares were voted in favour of removing him as a director of the embattled Gold Coast dental group.
Immediately after yesterday’s vote in Brisbane, Mr Timoney said he intended to challenge the results through the courts, or a second meeting, due to what he called “major discrepancies in the numbers”.
“(Management) have refused to provide our legal firm access to the proxies for a proper count and we intend to challenge them on this issue,” Mr Timoney said in a statement.
It followed a dramatic meeting, which ended in an emphatic defeat for Mr Timoney and ally and former chair David Herlihy.
Proxies and votes were lodged by 900 shareholders, representing 89 per cent of the share capital in the company.
More than 64 per cent of shares were voted in favour of removing Mr Timoney from the board and 65 per cent in support of dumping Mr Herlihy.
Mr Timoney failed to have current chair David Usasz removed, with 57 per cent of shares voted against the motion, nor a visibly relieved executive director Tracy Penn, who received the backing of 55 per cent of securities.
Mr Usasz said his team, including new CFO Emma Corcoran, can now focus on improving shareholder value and restoring the financial performance of the company.
“The outcome means we can put all our energy into running the business,” he said.
Since the notice calling for the shareholder meeting was issued last month, both sides have waged a fierce, and sometimes bizarre campaign, for control of the company.
The fight began when Mr Timoney was removed earlier this year in the wake of poor first-half results.
Mr Timoney, with Mr Herlihy’s support, called for an extraordinary general meeting, accusing new management of being “renegades” and failing to follow proper boardroom procedures.
Mr Usasz and Ms Penn hit back, insisting Mr Timoney was dumped due to the poor performance of the company under his watch.
At yesterday’s meeting counsel for Mr Herlily, Stephen Russell, stood up to challenge the validity of the proxy votes, asking to examine them.
Mr Russell said he did not propose to delay the vote and would look at the proxies after the meeting.
However, Mr Usasz denied his request.
“I’m advised a number of shareholders have been chased and harassed for their votes,” he said.
“They do not wish to give details of which way they voted.”
Shareholders at yesterday’s meeting reacted with relief to the results.
Joint-venture partner Jonathan Hamilton said he had bought more shares believing the “intrinsic value” of the company was higher than the share price reflected.
“I’m confident in the current executive in what they are proposing to turn the company around,” he said.
Melbourne dentist Dr Michael Sawaya said he was “very happy” with the result.
“I feel relieved the whole thing is over,” he said.
Carl Burroughs, of Integrated Dental Marketing, said he believes the board now has a mandate to get on with his turnaround plan.
“I would have been disappointed if it was too close,” he said.
“Hopefully this will be the end of the turmoil. I hope we can get on with the job of looking after patients instead of fighting.”
Paediatric dentist Dr John Camacho failed to be voted on to the board, despite shareholder support for representation of dentists.