AUSTRALIA

Bounty battle hits the Federal Court

BOUNTY Oil & Gas is seeking a Federal Court injunction to stop former managing director Tom Fonta...

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In the notice to shareholders, Fontaine called for the removal of two Bounty directors, Leith Wale and Didier Murcia, and their replacement with two people related to the Drillsearch group, Graham Reveleigh and Charles Ross.

Current managing director Laurence Roe told EnergyReview.net that Fontaine had declined an offer to add his resolutions to the AGM and had instead organised a separate general meeting for November 17.

“The company was willing to let the resolutions be added to the AGM and we were amenable to it, but the agreement didn’t work,” Roe said.

Roe said he believed Fontaine’s notice of meeting and the attached proxy form breached the Corporations Act 2001 and the company’s constitution.

But Fontaine said Roe’s comments and the injunction came as a surprise to him.

“This is the first I’ve heard about an injunction – I haven’t even seen it yet,” Fontaine told EnergyReview.net this morning.

A copy of Fontaine's notice calling for a general meeting was sent out to shareholders a month ago, so he was surprised that Bounty was now calling for an injunction, he said.

Fontaine also disputed Roe’s comments that he had been allowed to add his resolutions to the AGM.

“That’s completely untrue,” Fontaine said. “We wanted to take that opportunity and they wouldn’t accept it.”

This is not the first time Bounty has threatened Fontaine with the courts.

In October, Bounty said it would pursue legal action against Fontaine in order to have him reimburse US$22,800 paid in relation to work he undertook at the Nyuni prospect in Tanzania. Roe has also called to have Fontaine removed from his directorship.

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