LSE-listed specialty alloy producer Afarak Group has received a request from shareholders, holding a collective 11.09% of shares, to convene an extraordinary meeting of shareholders, to discuss the dismissal of the current board and election of new board members that are independent from the company’s main shareholder and COO Danko Koncar.
Afarak Group has also received notifications from shareholders Atkey and LNS, who hold more than 56% of the shares and voting rights, that they will vote against these proposals.
The proposal to dismiss the board follows after the Finnish Financial Supervisory Authority said Koncar, and entities controlled by him, have acted together with Hino Resources, Finaline Business and Koncar’s spouse to exercise control in Afarak.
Their combined voting rights amount to about 41.56%.
The authority subsequently ordered Koncar to pay a £40-million fine, as well as a supplementary amount of £10-million, that has accrued from noncompliance to buy out Afarak shares.
However, the fine is not yet legally valid, since Koncar appealed the authority’s decision to the Helsinki Administrative Court.