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Corum board lacks independence: director

Corum board lacks independence: director

Douglas Halley has revealed he has no desire to continue as an independent director of Corum (ASX:COO), following a motion to remove submitted by the group's major shareholder.

But in a letter to shareholders, Halley said he has not yet decided whether to resign prior to the vote on the motion at the IT group's AGM on 25 November.

Lujeta, a company which owns 54% of Corum, has proposed the motion to remove Halley from the board.

Lujeta is beneficially owned by fellow director Bill Pateson, Halley said, adding that the entity has given has given no explanation for reasons behind the motion.

“In my view, it is my exercise of true independence as a director that is the reason for [the motion],” he said. “there have been no complaints from other directors about my performance.”

As Lujeta is qualified to vote its shares, if it chooses to back its own motion it will pass, he said.

He said he felt he was the only truly independent director on the board – despite ASX guidelines – claiming that the other non-executive directors have had past and present associations with Lujeta.

Halley encouraged shareholders to ask questions about the motivation behind the motion, as well as why he had been previously removed from the audit committee by a motion proposed by managing director and CEO Geoffrey Broomhead.

“In all the circumstances I have no desire to continue as a director of Corum [but] I believe you should attend the meeting to ensure your best interests continue to be served,” he said.

The Corum Group currently consists of four companies, an eCommerce arm, a health software division, a real estate services department and a real estate training wing.

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Tags CorumDouglas HalleyBill PatesonGeoffrey BroomheadASX:COO

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