1 Aug 2016

Shareholders Assn calls for Rakon's Robinsons to step aside

1:52 pm on 1 August 2016

The Shareholders Association is taking aim at the board and management of technology manufacturer Rakon.

It is is actively seeking enough proxy votes to oppose the re-election of director Darren Robinson - the son of founder and board member Warren Robinson - at next month's annual meeting.

Rakon CEO Brent Robinson

Rakon chief executive Brent Robinson Photo: RAKON

The association said the company had had a dismal performance and it was time for Robinson family to be replaced. The group called for Warren Robinson to voluntarily step down from the board and for his son, chief executive Brent Robinson, to be replaced.

Association chair John Hawkins said it was also concerned about the position of board chair Brian Mogridge, who is also up for re-election, but was reluctant to push the issue as that would leave the company rudderless and in breach of the NZX rules.

"We expect to see [Mr Mogridge] outline a strategy that is in the best interests of all shareholders, rather than the Robinsons.

"If he can do so, we will consider supporting him while changes are made, but it is inevitable that the board in a year or two will need to be very different to the current one," said Mr Hawkins.

Rakon made a net loss of $1.7 million in the year ended March and sales declined by 14 percent.

The Robinsons have not yet responded to a request for comment.