4Sight Holdings share price tumbles 24 percent
JOHANNESBURG – The share price of JSE-listed technology group 4Sight Holdings tumbled 24 percent to 16 cents after its chairperson of the audit and risk committee, Geoffrey Carter, quit due to a “untenable situation” at a major subsidiary level amid a board room battle.
4Sight said in a SENS statement: “Carter has resigned due to the untenable situation at a major subsidiary level, which has led to such subsidiary executives sending a variety of emails containing, inter alia, false accusations.”
4Sight warned shareholders in August that the board had received correspondence from a shareholder holding at least 5 percent of the voting rights in the company that required it to call a special meeting, the aim being to reconstitute the board.
The company, which subsidiaries include Foursight South Afra, BluESP and AGE Technologies, failed to name the subsidiary in the statement.
The dispute appears to have snowballed. 4Sight is expected to hold a special meeting on shareholders on Friday.
Carter in the statement alleged that serious issues of financial irregularities had occurred with no consequences.
He said: “This all raises pertinent statutory and regulatory questions in relation to the JSE.”
Carter said his position had become untenable. “The lengthy diatribe... is delusional in content, incorrect in law and in my view equates to ‘Trumpism strategy’ – attack is the best form of defence and rule by division … I feel deeply sorry and concerned that the board … are embroiled with various subsidiaries regarding belligerent breaches in corporate governance, ill-disciplined financial transgressions and the continuous disagreements as to the interpretation to certain clauses in the Sale of Shares Agreement.”
4Sight said that the board had made the JSE aware of the current situation with certain subsidiaries and the challenges facing the Board. -