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  <title><![CDATA[Kinghorn in RHG board stalemate]]></title>
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    <article id="18090">
      <title><![CDATA[Kinghorn in RHG board stalemate]]></title>
      <author><![CDATA[Rich Men Direct Staff]]></author>
      <attribution source="www.smh.com.au"><![CDATA[http://www.smh.com.au/business/kinghorn-in-rhg-board-stalemate-20110421-1dqk1.html]]></attribution>
      <createdate unixtime="1329907326" delta="12 hours ago"><![CDATA[2/22/2012]]></createdate>
      <image><![CDATA[gwa500630.jpg]]></image>
      <lead><![CDATA[One of Australia's richest men, John Kinghorn, has refused to cede control in the boardroom of RHG Ltd, the rump of the failed RAMS Home Loans business, to a group of new directors and now faces defeat on a controversial share buyback next week.]]></lead>
      <text><![CDATA[In an escalation of hostilities in the two-week board stoush, the three nominees to the RHG board yesterday refused Mr Kinghorn's invitation to become directors unless he agreed to the resignation of an existing board member.Mr Kinghorn, who is ranked 100th in the BRW Rich 200 list with a fortune of nearly $400 million, offered to form a six-man board on which he retained the chairman's deciding vote. Ultimately, he refused to relinquish control and talks broke down.Mr Kinghorn said the trio's demand was ''not acceptable'' as it would ''clearly result in control of the board'' passing to directors representing 10 per cent of the company''. ''Any change to the current board is a matter for the shareholders to determine,'' he said.The stoush erupted after Mr Kinghorn launched a controversial low-ball buyback that would tighten his and his son's grip on RHG, currently at 24 per cent. The plan sparked a shareholder backlash, with claims the buyback was priced well below the company's own asset valuation. Shareholders and governance groups called it privatisation by stealth.Having stated he would not vote his stake on the buyback proposal, Mr Kinghorn looks in danger of losing next week's vote on the buyback. It is unclear whether he will change his mind and vote his stake. Last night, Mr Kinghorn raised questions about the number of shares controlled by dissident shareholders that were eligible for the buyback.Mr Kinghorn faces an extraordinary general meeting in June at which rebel shareholders headed by funds managers Geoff Wilson and Karl Siegling plan to remove two existing directors, John McGuigan and Greg Jones, and appoint the three newcomers.In the face of this week's shareholder revolt, Mr Kinghorn made two concessions: agreeing not to delist RHG after the buyback; and inviting the three nominees of the rebel shareholders to join the board. While the dissidents sought to appoint new directors, it was conditional on the resignation of two existing directors.The dissidents put an ultimatum to Mr Kinghorn that they would not join the board unless one of the existing directors stepped down, effectively forcing him to decide between winning backing for the buyback or ceding control of the board.Matthew Kidman, from Wilson Asset Management, said the new nominees were not prepared to sit on a board of which the present directors retained control.]]></text>
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