Wellington, New Zealand, November 4, 2005--Sam Magill is clinging to his Feltex directorship and will face shareholders at the annual meeting next month, despite a resolution to vote him off the board, according to Stuff.co.nz.
Yesterday the carpet-maker's former chief executive said he had no plans to give up his directorship before the December 1 meeting.
"I'm still a director of the company and I'll remain a director and present myself at the AGM," he said.
"I've got a lot of experience in the business and as long as I continue to believe I can add value, I'll continue to remain a director."
His stance is somewhat of a surprise after Wednesday's comments from the New Zealand Shareholders' Association indicating that a resolution - with the company's support - had been tabled giving shareholders the ability to vote Mr Magill off the board.
Association advocacy director Ross Dillon had thought the resolution would be redundant by the time of the meeting.
However, he said yesterday: "If he wants to make himself the target for every disaffected shareholder in Feltex, then that's fine."
Whether Mr Magill would succeed in retaining his directorship would come down to a majority vote and "I couldn't imagine a shareholder who would vote against the resolution".
The Australian-based Mr Magill resigned as Feltex chief executive in June after the company's second profit downgrade this year, which sparked a review of all its operations to claw back value for shareholders.
Feltex shares, which sold at $1.70 each in the June 2004 initial public offering, were worth 54c last night.
Mr Magill, a 36-year carpet industry veteran, left in August and the board terminated his contract in late September after failing to reach agreement on his severance payout.
