Streaming and DVD rental service Quickflix is resisting calls from a small group of US investors for a general meeting aimed at removing the current board and electing four new directors.
Most of the investors are represented by Guaranty Finance Investors, which owns about 4.6% of the ordinary shares.
Guaranty’s Don Campbell resigned as a Quickflix director in July 2012, telling the company he could not devote sufficient time to his board duties.
In place of the current directors Guaranty wants Gary Dartnall, Matthew Joynes, Malcolm Reeve and Ethan Gilmore elected to the board. None of the nominees lives in Australia or is a shareholder in Quickflix.
“We’re going through a process but if it goes to a general meeting then we have the support of major shareholders,” Quickflix chairman/CEO Stephen Langsford told IF.
He noted the US group’s move comes soon after Quickflix reported its March quarter results, when paying customers rose by 16% to 118,557 and revenues were up 9% to $5.2 million.
“We’re really focused on progressing growth and have a full slate of initiatives underway so [that] won’t allow us to become too distracted,” he said.
“There is no doubting that this is a hot sector so I imagine there will be more interest directed QFX's way.”