Nicholas Bolton, the 26-year old IT entrepreneur who has become a shareholder activist, has won his case against toll road giant BrisConnections and will now attempt to have BrisConnections wound up in a shareholder vote to be held on 9 April.
Bolton, who established domain name sales company Domain Central in 2003, owns an investment company called Australian Style Investments, which is the largest shareholder in BrisConnections, the company building Brisbane’s $4.9 billion toll road project linking the city and airport.
With BrisConnections units at just 1c, Bolton was able to amass his 19.7% stake for less than $100,000. But he claims that he – like many BrisConnections shareholders – was unaware that each unit holder is required to pay a $2-per-share instalment to BrisConnections over the next 12 months.
Bolton, who faces a debt of $154 million on his shares, has called an extraordinary general meeting of the company on 9 April in the hope of winding up the company to get out of paying the instalments.
BrisConnections countered by applying to the Victorian Supreme Court to have Bolton’s company Australian Style wound up, but yesterday Bolton won this case, meaning the shareholder meeting can proceed on 9 April.
Bolton said he was pleased with the outcome of the trial.
“It’s very important than unit holders get to meet in difficult times,” he told reporters.
BrisConnections was also rocked yesterday by the decision of the Australian Securities and Investments Commission to enter the case, questioning the financial model underpinning the project and raising questions about whether BrisConnections has put undue pressure on shareholders to reject Bolton’s plan.
The Supreme Court will hear more from ASIC’s lawyers today.
Related articles:
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
Comments