Weeks after apologising to shareholders for an “unviable” contrivance to accumulate the field’s biggest prawn farm on the WA/NT border, the executive government of one in all Australia’s finest aquaculture companies has stop.
Key aspects:
- Mick McMahon’s resignation comes sooner than an strive to remove away him from the board, prompted by fellow director Ian Trahar
- Force internal the company’s leadership grew after Mr McMahon deemed the prawn farm venture to be “unviable”
- Seafarms has appointed a non-government chairman because it begins the explore a substitute CEO
Mick McMahon equipped his resignation from Seafarms this day and can step down straight after eight months within the head job.
It comes after signs of mounting tensions among the company’s leadership team, which accumulate been made determined to shareholders at a most up-to-date investor briefing.
The worn Ingham’s Chicken boss handed down a scathing assessment into Seafarms’ prolonged-held plans for a main prawn farm at a remote cattle subject reach Kununurra in March.
Challenge Sea Dragon garnered thousands and thousands of greenbacks’ rate of give a make a selection to from the federal, WA and NT governments because it used to be first touted in 2012.
Momentum used to be constructing all the plan in which by means of the venture remaining year after construction started at its grow-out facility at Legune Situation, where Seafarms deliberate to manufacture more than 100,000 tonnes of black tiger prawns a year.
Nonetheless after the completion of a assessment into the venture this year, Mr McMahon described the venture as “unviable in its most up-to-date form”.
He said Challenge Sea Dragon fervent “unacceptable risk” and would “not generate acceptable monetary returns” to shareholders.
Seafarms will as an different work on scaling up a pilot venture at Legune Situation.
Mr McMahon apologised to shareholders all the plan by means of the briefing, while suggesting the company’s leaders must “remove responsibility for his or her actions”.
The company’s fragment ticket fell more than 40 per cent off the wait on of the announcement.
Mr McMahon’s sophisticated critique of Challenge Sea Dragon is believed to accumulate prompted Ian Trahar – the company’s biggest shareholder – to set in a proper quiz to remove away Mr McMahon as a director of the company.
Mr Trahar has been a key driver of the venture and used to be beforehand the company’s government chairman.
An unparalleled in style assembly used to be scheduled for June 20 for a vote on Mr McMahon’s future, but his resignation formulation that can no longer be required.
Mr Trahar will remove the reins as non-government chairman because the hunt begins for a new chief government.
In an announcement, Seafarms acknowledged Mr McMahon for his contributions as a director, and wished him “every success in due course”.
Mr McMahon and Mr Trahar declined to comment.
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