Aspen Group Ltd says it will hold a shareholder meeting, requested by its former managing director and his associates, to consider ousting most of the board of the property investment firm.
Angelo Del Borrello and Entrust Funds Management Ltd on Monday requested the meeting to vote on the removal of Aspen chairman Reg Gillard, managing director Gavin Hawkins and non-executive director Terry Budge.
Mr Budge is the former chief of BankWest.
Entrust and Mr Del Borrello hold a combined stake in Aspen of 7.83 per cent.
Entrust wants the executives replaced with three of its candidates, including Mr Del Borrello, who was removed as Aspen's managing director in June last year.
Aspen on Monday said in a statement that its board remained unanimously of the view that it was not in the best interests of its securityholders for Mr Del Borrello to resume the role of managing director.
Entrust has also proposed a resolution to remove any director appointed to Aspen after January 27 and before the date of the meeting, subject to any or all of the resolutions to remove the three existing directors being passed.
Aspen on Monday appointed Frank Zipfinger as a non-executive director.
Entrust is concerned that Aspen trades at a 33 per cent discount to its net asset backing.
A date for the meeting has not yet been announced.
Aspen shares were down one cent, or 2.11 per cent, at 46.5 cents.
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