Comment from Block Energy Support Group re NED Resignations
August 26, 2021
The group of concerned shareholders (the “Concerned Shareholders”), representing approximately 20% of the shares in Block Energy plc, has issued a statement regarding the RNS issued this morning:
“This morning, the Company was forced to reissue its announcement from 25 August – Further Response to Requisition Notice. The revised statement has removed important wording regarding the resignation of its two independent non-Executive Directors, in yesterday’s RNS. The deleted language was as follows:
GP Jersey seeks to imply that the resignations of Chris Brown and David (“Dato”) Sandroshvili reflect issues relating to the corporate governance of the Company. These individuals are two well-regarded and missed colleagues, and both expressed their wish to avoid involvement in the continuing tensions between the Company and the Shareholder Group.
The conclusion to be drawn is that one or both non-Executive directors did not agree with this statement, or approved it to be sent, forcing the retraction.
The Concerned Shareholders have consistently asked for an adequate explanation as to the circumstances around the resignations of these two directors. No adequate explanation has been given. As we said in our statement published on 25 August (here), we did not believe that the explanation in the Company’s RNS reflected the true circumstances of their departures. Once again, the Company has misrepresented information to shareholders to pursue its own interests.
We urge again that the full circumstances surrounding their respective departures, including all relevant board minutes, meeting notes and resignation correspondence be shared with all shareholders.
Furthermore, the fact that the Company was forced into this embarrassing retraction goes to the heart of one of the Concerned Shareholders key issues with the Company, namely the Corporate Governance failures of the Board. We have consistently highlighted the lack of clarity in market communications.
As well as the details of the departures, the Board now needs to explain the process by which the Company issued a statement to the market with that statement included but without the appropriate approvals?
It is one of the reasons Concerned Shareholders still consider that a review of the Company’s corporate governance failures is essential, and allow the Board to regain the trust of all shareholders.”