Alliance Mineral Asset's former chief executive and an erstwhile executive director are no longer substantial shareholders of the Australian mining company after both disposed of nearly all their shares for about $12.58 million in a married deal.
In an exchange filing yesterday, the firm announced that Living Waters Mining Australia, an investment vehicle controlled by former CEO Tjandra Adi Pramoko and his wife, former executive director Suen Sze Man, had sold 37 million shares at an average price of 34 cents apiece through a married deal last Friday.
The disposal pared the couple's deemed stake in the company to 0.02 per cent from 5.87 per cent.
Alliance Mineral had given notices of termination to both Mr Tjandra and Ms Suen, who ceased to hold their positions at the company from March 1.
Among other things, the firm noted that it had lost confidence in their ability to serve the company in their respective designations.
The loss of confidence from the majority of its board in Mr Tjandra was mainly attributed to substantial shareholders and key business partners informing the board that they did not wish to deal with the company as long as Mr Tjandra remained as CEO; and that he had attracted a series of personal litigation which involved allegations of breaches of promise, raising questions of integrity, said Alliance Mineral.
Similarly, its decision to terminate Ms Suen's services was undertaken by considering the views of its substantial shareholders and business partners, as well as the majority of its board having the view that Ms Suen's continued occupation as executive director would undermine the board's decision to terminate Mr Tjandra's services as she is his spouse.
Both Mr Tjandra and Ms Suen have reserved their rights to challenge the company's decision.
Shares in Alliance Mineral closed at 36 cents, up by 1.4 per cent or half a cent.