A delayed share float by DNZ Property Fund has hit further strife.
Financial adviser MMG, which has called for DNZ's independent directors to resign, says it's not happy with how talks are progressing and is now pursuing legal action.
In a letter to DNZ shareholders, MMG says attempts to engage with DNZ management have not been constructive and this has left it with no option but to call in its lawyers.
MMG also says its lawyers sent DNZ a letter last week, raising concerns that the company's planned share float and buyout of the management contract breaches the Companies Act and DNZ's constitution.
DNZ shelved plans for its float the next day.
MMG, which has support from 15% of DNZ shareholders in terms of value, is calling for a special meeting to be called by DNZ in the New Year.