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Tap ready for investor revolt

Tap Oil’s board is bracing for angry shareholders at today’s annual meeting amid a bitter stoush between the Perth company and its biggest investor.

Already on notice by Thai billionaire Chatchai Yenbamroong, who wants to roll Tap’s board at a requisitioned meeting, today’s AGM will serve as a proxy of sentiment among other shareholders. It also puts Tap non-executive director Doug Schwebel, the only board member up for re-election, in the firing line. Mr Yenbamroong, who owns 19.9 per cent of Tap, is not expected to attend the meeting but will be represented.

But likely to attend is Paul Underwood, Tap’s founding managing director, who remains a top-10 shareholder and is unhappy with the company’s performance. “In my opinion there have been four years of poor decisions, poor governance, excessive remuneration and, as reflected by the share price, a material destruction in shareholder value,” Mr Underwood said yesterday.

Mr Yenbamroong, who like Tap is a shareholder in the Manora oil project off Thailand, stunned the Perth company in March when he flagged he would requisition a meeting to install his own board. However, at least one of Mr Yenbamroong’s board nominees — Alan Stein — has since withdrawn and there is talk another, David Whitby, may also no longer be part of the Thai tycoon’s ticket.

While some shareholders have expressed disappointment with Tap’s share price and a decision in March, coinciding with Mr Yenbamroong’s move, to put itself up for sale, it has since emerged Mr Yenbamroong is pursuing Tap through the courts for a reserves payment that could be worth more than $10 million.

Tap managing director Troy Hayden said last night he expected the battle with Mr Yenbamroong to “spill over to the annual meeting but it is the role of the board and management team to look after the interests of all shareholders and not be influenced by a vocal shareholder that has a potential conflict of interest”.