PaperlinX board loses key members
The chairman of embattled paper, sign and display supplier PaperlinX has quit the board, along with two other directors.
The departure of the chairman and two directors from the loss-making company follows that of PaperlinX chief executive Toby Marchant in July.
Chairman Harry Boon and non-executive directors Lyndsey Cattermole and Anthony Clark had resigned from the board, effective from September 28, PaperlinX said today.
‘‘The company expects to make further announcements about additional appointments to the board prior to the effective date of the above resignations,’’ PaperlinX said in a statement.
PaperlinX shares were flat at 5.9 cents in midday trade, after earlier rising as much as 6.8 per cent.
Mr Boon narrowly survived a move to oust him from the board in March. Andrew Price, who was appointed a non-executive director of the company in August, brought on the move, and told shareholders in March that Mr Boon had been an integral board member during a time PaperlinX had performed very poorly and management had made excuses ‘‘year after year’’.
PaperlinX booked an annual loss of $266.7 million for the year to June 30 after writing off the value of its European operations.
Investors were stunned by the result for 2011-12, which was 56 per cent larger than the $171 million deficit PaperlinX forecast in June. The company reported a net loss of $108 million for 2010-11.