ICON INVESTORS FORCED TO VOTE ON 'GOLDEN HANDSHAKE'

Written on the 17 July 2015 by Nick Nichols

ICON INVESTORS FORCED TO VOTE ON 'GOLDEN HANDSHAKE'

ICON Energy (ASX:ICN) has been forced to call a shareholder meeting to vote on whether it should pay the company's former company secretary more money on top of his termination settlement.

The move comes as Ross Mallett, who was also Icon Energy's legal counsel, threatened to sue the Gold Coast-based gas explorer for what he is claiming are unpaid entitlements under the terms of his original contract.

Mallett's position as legal counsel at the company was abolished in May due to a restructuring at the executive level by Icon aimed at reducing costs. He had been with the company for three years.

Icon is understood to have paid Mallett a severance package, details of which have not been disclosed. It is not clear how much more he is seeking from Icon.

Under corporate law, severance pay can total up to one year's salary based on an average pay rate calculated over the preceding three years. A company cannot pay more than this without shareholder approval.

Company records show that Mallett had a base salary of about $294,000 in the 2014 financial year.

Icon Energy managing director Ray James says he cannot comment on the matter beyond what has been included in a statement released to the ASX this morning.

"Under the Corporations Act, the company must seek approval from shareholders for the payment of any termination benefits which are claimed over and above those payments already made to Mr Mallett in accordance with the relevant section of the Act," says the company in the statement to the ASX.

"Mr Mallett has, on two occasions, asserted that he will sue the company for breach of contract for those contractual entitlements, the quantum of which exceeds the limit set under the Corporations Act."

Icon has called for the meeting to be held at its Broadbeach Waters headquarters on August 17.

It is understood Mallet could still sue Icon should shareholders vote against further payment to him, although he will be up against changes brought to the Corporations Act in 2010 by former Prime Minister Julia Gillard.

The changes were aimed at shaking up the golden handshake previously offered to key company executives who were vacating their roles.


Author: Nick Nichols

Latest News

STRAIGHT TALK: STARTING AND SELLING BUSINESS

INVESTOR, entrepreneur and managing director of a private investment business, Jason Titman, has helped start and ...

RAPTIS POSTS FIRST PROFIT IN ALMOST A DECADE

GOLD Coast developer Raptis Group (ASX) has scratched out its first annual profit in almost a decade after resuming d...

PACKER TO POCKET $448M IN CROWN SHARE SALE

JAMES Packer is giving up majority control of Crown Resorts (ASX:CWN) after his private company Consolidated Press...

NVC KEEPS PICKING UP PACE

VET company NVC (ASX: NVL) picked up serious pace to perform ahead of prospectus expectations for the full year.

T...

Related News

HOTCOPPER FLOAT SLAMMED AS 'CRAZY'

CUDECO founder Wayne McCrae (pictured) has ripped into share market discussion board HotCopper ahead of its IPO, s...

FROM THE TANK: GOOD OLD-FASHIONED BUSINESS STILL RELEVANT

BEING involved with Shark Tank and my friendship with startup guru Steve Baxter has inspired me to seriously engage w...

TOURISM GETS A SHARE OF QANTAS BILLION

QANTAS Airways (ASX:QAN) is ploughing back some of the mega-profits it has earned this past year into promoting its h...

INTEREST RATE HITS RECORD LOW OF 1.50 PER CENT

THE Reserve Bank of Australia has taken the cash rate down 25 basis points to a record low of 1.50 per cent at its...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter