Structural Monitoring Systems (ASX:SMN) shareholders seek vote to sack directors

• Two directors of Structural Monitoring Systems (SMN) are at risk of being voted off the company’s board after shareholders this week called for an extraordinary ordinary meeting
• The shareholders, who combined hold a 5 per cent interest in SMN, requisitioned the EGM amid concerns around the company’s plans to raise some fresh capital
• At the meeting, shareholders will vote on whether to remove non-executive directors Stephen Forman and Michael Reveley from the SMN board and replace them with Bryant McLarty
• Mr Mclarty is Chairman of WA-based stockbroking and advisory firm Mac Equity Partners and one of SMN’s 10 biggest shareholders
• Shares in Structural Monitoring Systems last traded at 97 cents each on Tuesday, October 5

Two directors of Structural Monitoring Systems (SMN) are at risk of being removed from the company’s board after shareholders this week called for an extraordinary ordinary meeting (EGM).

The company said in an announcement to the ASX today that shareholders who hold a combined 5 per cent interest in SMN have requisitioned the EGM in light of a capital raise first flagged by SMN last week.

At the meeting, the shareholders in question will seek to have non-executive directors Stephen Forman and Michael Reveley removed from the Structuring Monitoring Systems board and replaced by Bryant McLarty.

Mr Mclarty is Chairman of WA-based stockbroking and advisory firm Mac Equity Partners. He is one of SMN’s top 10 shareholders, holding a 1.25 per cent interest in the company, according to SMN’s latest financial report.

It’s not been confirmed by SMN if Mr Mclarty is one of the shareholders calling for the EGM.

Structural Monitoring Systems said the requisitioning shareholders raised concerns around the company’s plans to raise some fresh capital. SMN first made news of the planned capital raise public when it called a trading halt on October 6.

Details of the shareholder concerns around the raise have not been disclosed to the market.

SMN said it was in talks with the agent representing the shareholders and the company was receiving legal advice regarding the call for the EGM.

The company said that should the concerned shareholders refuse to retract their request for the meeting, it will circulate the details of a shareholder general meeting in “due course”.

If the meeting goes ahead and shareholders vote in favour of the resolutions to be presented, Mr Reveley and Mr Forman will be removed from the SMN board and replaced with Mr Mclarty immediately.

Shares in Structural Monitoring Systems have been in ongoing voluntary suspension since the capital raise was announced last week. The company last traded at 97 cents each on Tuesday, October 5.