TSX-listed Guyana Goldfields will hold a special meeting of shareholders on May 22, alongside its yearly general meeting, to discuss matters related to its former chairperson Patrick Sheridan.  

A meeting was requisitioned by a group of dissident shareholders, led by Sheridan, who was terminated from his position by the board on July 30, 2018.

Guyana said on Tuesday the Sheridan dissidents’ proxy fight was “costly and unnecessary”, arguing that the fight was initiated without any notice to or engagement with the company.

The yearly and special meeting will deal with both normal course matters and matters related to the requisition.

Further, Guyana announced the formation of a special committee of independent directors for the purpose of ensuring that any action taken regarding the Sheridan dissidents’ concerns is in the best interests of the company.

Meanwhile, the company also announced that director Alan Ferry has resigned to allow for board refreshment. He had been the longest-serving director of the company, having joined the board in 1998.

Guyana noted in a news release that the board had instituted a series of operational and governance improvements at the company since Sheridan's termination

"It is disappointing that Sheridan refuses to accept any responsibility for the company's operational, governance and governmental relations challenges which arose over his 20-plus years as the company's top executive," said non executive chairperson René Marion.

“As the proxy contest progresses, I want to assure shareholders that the company's management, many of whom joined after the board terminated Sheridan, will remain focused on implementing these positive operational and governance changes,” Marion added.

As part of this commitment, in October 2018 Guyana appointed Roscoe Postle Associates (RPA) - an independent firm of engineers and geologists - to assist in the review of the geologic controls and grade variability at the Aurora gold mine.

The RPA review will be incorporated into the updated resource and reserves estimates expected to be released in late March.

Prior to Sheridan’s termination, the company was saddled with an ineffective dual reporting structure under which Sheridan was responsible for exploration, government relations and the company's North Roads office in Georgetown, Guyana, where those activities were managed.

As executive chairperson, Sheridan reportedly resisted the implementation of a more efficient single-channel structure. After firing him, the board implemented the single channel reporting to the president and CEO, a best practice for management accountability.