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Category: Business, Economics and Finance / Food and Beverage

Bellamy's chairman rebukes Jan Cameron's bid for control

Thursday, 16 Feb 2017 08:20:52 | James Dunlevie And Sallese Gibson

Bellamy's organic infant formula (ABC Rural: Brett Worthington)

The chairman of infant formula company Bellamy's says the board can see off a bid for control from disgruntled shareholder Jan Cameron, adding former chief executive Laura McBain "did a terrific job", despite being forced out in January over the company's share price dive.

In a letter to shareholders in the Tasmanian company earlier this week, high profile investor Ms Cameron nominated herself, lawyer Rodd Peters and Asian management consultant Chan Wai-Chan as replacements for three of the incumbent directors, arguing the current board had presided over a 70 per cent fall in shares over the past year.

Bellamy's shareholders will vote on the proposal, ahead of an extraordinary general meeting at the end of the month.

Five things to know about Bellamy's


Business reporter Elysse Morgan looks at some of the key reasons why market darling Bellamy's has soured.

Bellamy's chairman Rob Woolley said the board still had the confidence of shareholders and that Ms Cameron's pitch would fail.

"It's a very difficult time and I'm sure people are very unhappy with what's happened with the share price but I'm not a person that wants to sit there and warm the seat for the sake of it," Mr Woolley told ABC Hobart.

Mr Woolley admitted it was reasonable for shareholders to question Bellamy's board over its handling of the business in light of its recent performance.

"Our board has been very clear that our whole approach since we've had these difficulties, and they've been open in the share market since the end of November, is that we are reviewing the whole company and we're resetting our strategy," he said.

"Part of that review will be how we should be set up in the future as a board. That won't be done in isolation, that will be done with proper consideration of what the needs are."

'I like her': chairman defends dumped CEO McBain

The letter to shareholders also accused the board of trying to "sheet all blame" on former chief executive Laura McBain for Bellamy's woes.

Mr Woolley defended Ms McBain but said the company was moving on.

"She did a terrific job for the company, I like her, we're all very sad about where the company has ended up," he said.

"We've got a new CEO now and we're looking at getting the business going."

Bellamy's managing director Laura McBain Photo: Laura McBain was stood down in January. (ABC News: Carla Howarth)

The letter to shareholders, signed by Ms Cameron, Mr Chan and Mr Peters, accused Mr Woolley of a demonstrated "lack of commitment to the business" by selling his 80 per cent shareholding in the company last August, before the share price tumbled.

Ms Woolley defended the move and said he still owned 250,000 Bellamy's shares.

"I think it's pretty rich to say I've been selling out," he said. "I've sold down a number of shares. I remain a very significant shareholder in the company.

"When we listed Bellamy's all my wealth of any consequence was tied up in Bellamy's and I resolved that I would rebalance some of that over the journey."

The Bellamy's saga:

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