The offer, however, was apparently linked to the board urgently calling an extraordinary general meeting (EGM) at which Ottapathu hoped to have shareholders vote not only on the bridging loan offer, but also on the board’s removal. Ottapathu, popularly known as Ram, lost a High Court suit last Friday on urgency, where he had wanted the board compelled to urgently hold an EGM. In opposing the application, the board accused Ram of rushing the EGM in order to prevent shareholders from adequately studying an upcoming forensic report into the troubles at Choppies. Preliminary results of the investigations allegedly implicate the suspended CEO in “gross misconduct”.
Since his suspension in May, Ram has been able to rally the support of more than 50% of Choppies’ shareholders for an EGM on the board’s removal. The June 24 letter with the bridging loan offer from Ram, was tied to the EGM and also carried a 24-hour deadline. The suspended CEO threatened that he would proceed with a High Court case on urgency to demand the EGM, should the deadline elapse.
