Abano director Peter Hutson has resigned from its board following a unanimous request from the other directors.
On Monday, Mr Hutson and another Abano shareholder, James Reeves, who between them own just under 20% of Abano, signed an agreement with private equity firm Archer Capital locking up their holdings pending a possible take-over offer.
If it succeeds in taking over Abano, Archer, which wants to keep Abano's dental operations, plans to sell Mr Hutson Abano's share of the fledgling audiology business in Australia and Asia for a nominal sum.
Mr Hutson owns half the audiology business.
Abano chairman Trevor Janes says Mr Hutson remains a director and an employee of the audiology business but Abano's board has required that various operational protocols be put in place to address Mr Hutson's ongoing conflict of interest.
Earlier this week, Mr Janes said Abano's board was seeking legal advice on whether one of its directors can effectively discharge his duties while he is a party to a hostile take-over.
