On Thursday, shareholders of Donaco International Ltd. got together for a specific reason. The investors of the Southeast Asian casino company needed to determine whether or not Joey Lim Keong Yew and Ben Lim Keong Hoe, often referred to as the Lim brothers, should retain their spots on the company’s board. After a short vote that saw substantial input, the Lim brothers have been forced to give up their spots and are now virtually removed completely from anything related to Donaco.
In a filing with the Australia Securities Exchange (ASX), Donaco acknowledged that the duo had been ousted after 90% of the voting shareholders agreed to have them give their seats. It brings to a close a long battle between the two and company investors over concerns of how the company was being managed.
Joey Lim is the founder and the former managing director, as well as former CEO, of the company. He was forced out of the top spots in March when the company’s investors relieved him of his duties. Ben Lim then stepped in as interim CEO until Paul Arbuckle was appointed new CEO this past June.
The removal from the board follows a call by the Spenceley Family Trust and the Spenceley Family Superannuation, represented by trustee Spenceley Management Pty Ltd., called for the extraordinary general meeting along with another shareholder, Antonia Carolina Callopy. The three entities control 5.04% of the company and had entered the resolution to vote on the issue of the Lim brothers’ places on the board when the meeting was announced last month.
James Spenceley owns directly, or through entities owned by him, around 4.68% of Donaco’s shares. He has been vocal in wanting to have the brothers out, asserting that it was in the best interest of the company and that it would allow Donaco to gain investor confidence. Spenceley is also the chairman of the board of Silver Heritage Group.
Who will fill the two spots on the board has not yet been announced. Last month, a company that just picked up 19.25% of Donaco’s stock, On Nut Road Ltd., requested two seats, but the board said that the stake was only worth one spot. On Nut Road picked up its shares from another entity, a creditor that once provided a source of revenue for Joey Lim.