PaperlinX board backs Boon

Following a request from PaperlinX shareholders to call a general meeting to discuss the removal of Harry Boon as chairman over concerns about poor company performance, the board has released a statement supporting Boon’s continued role as chairman.

In a continued campaign to disrupt the board of PaperlinX, shareholders holding approximately 5.07 per cent of the company last week called for the board to dump Boon as chairman in light of the company’s financial performance. Additionally, the shareholders called for the appointment of Andrew J. Price as a director of the company in Boon’s place.

On 9 February, the board responded to the request with a statement that expressed its support of Boon as chairman, and announcing the date of the general meeting it has called to discuss the matter. This will take place on 23 March in Melbourne.

Below is an excerpt from the board’s released statement:

“The Board acknowledges the Company’s poor financial performance. The Company has recently made a number of significant changes: the Board has been reconstituted with the retirement of four directors, the appointment of three new non-executive directors and the replacement five months ago of the former Chairman with Harry Boon. Additionally, Toby Marchant became Chief Executive Officer in November 2010 and he has substantially overhauled and reduced the size of the senior executive team. Further, during this period of leadership change and challenging trading conditions, especially in Europe, the Company has undertaken significant restructuring, dealt with a number of legacy assets associated with past paper manufacturing activities and initiated a Strategic Review.

"The Board and management believe they have taken the appropriate steps to stabilize the business and are committed to actions that optimize value for all shareholders. The Board fully supports its current Chairman, Mr Harry Boon.

"Further, the Board welcomes input and ideas from its shareholders for improving the fortunes of PaperlinX, in which we share a common interest. To date Mr Price has been unwilling to share his ideas and plans for the Company with us.”