Investors in Teathers Financial (TEA) have requisitioned an EGM to remove all the current directors and appoint new ones, which was accepted by the company on the 25th May. Teathers was an AIM listed business called C.A.Sperati that turned itself into an investment company and was then renamed (a common route for those giving up on their original business). However under AIM listing rules it needs to make investments within a year of becoming an investment company which it failed to do and therefore the shares were suspended last December.
The directors who might be removed if the shareholders win the vote at the EGM include Jason Drummond (Executive Chairman) and Jilesh Jagatia who were both involved in another AIM company called Media Corporation whose shares became worthless. ShareSoc published several articles in our Newsletters on the affairs of Media Corporation from 2011 to 2013 which was a very sad tale indeed.
Teathers response to the EGM requisition was to say that “investors may not have the opportunity to support the potential £1million equity investment in the Company…….as the directors do not believe that the investment would proceed if the current directors are removed”. The company will be issuing further announcements in due course, but it would not be surprising to see that there is a threat to put it into Administration as tends to happen in such cases.
ShareSoc gave some advice to the investors on submitting the required requisition.