Aspen Group has successfully warded off a board challenge headed by co-founder Angelo Del Borello, with more than 70 per cent of the votes at today's extraordinary meeting supporting the incumbent board.
Dissident shareholder Entrust Funds Management conceded it had lost its bid to oust managing director Gavin Hawkins, chairman Reg Gillard and director Terry Budge on Tuesday, after discussions with major stockholders revealed a lack of support to replace the board.
Entrust sought to replace Messrs Hawkins, Gillard and Budge with its managing director, David Franklyn, Mr Del Borello, and funds management industry veteran Richard Colless, over concerns about the discount to NTA at which Aspen was trading, and its poor-performing share price.
Director Seng Fai Chan would have remained on the board had the bid been successful. Mr Chan tendered his resignation yesterday after signalling support for Entrust's bid in January.
Aspen said that excluding the requisitioning parties shareholdings, the vote against Entrust's resolutions ranged from 80 per cent to 84 per cent.
Mr Gillard said the vote was a strong vote of confidence in the current board.
"Our securityholders recognise the importance of the company having a solid foundation from which to execute its strategy, and I re-affirm the board's commitment to delivering growth in shareholder value and returns in both the short and long term," he said
