Auto parts firm AMA’s shares plunge as it discloses court battle with boss
Automotive parts company AMA Group has disclosed it is in a court fight with its chief executive Andrew Hopkins after a whistleblower came forward with allegations last year.
AMA Group has revealed it is chasing more funds from its former chief executive
The disclosure saw its share price plunge by as much as 20 per cent this morning before a recovery which left it down 14 per cent by mid-afternoon. That marked a loss of about $90 million in market value.
The Gold Coast-based company told the ASX this morning that in September, the board had received a protected disclosure from an employee which it would not disclose publicly.
However, it brought in advisory firm McGrath Nicol to do a forensic investigation which was recently completed. It did not disclose the findings of the investigation.
Earlier this week, Hopkins made an urgent application to the Federal Court alleging he had been oppressed as a minority shareholder and the court made a temporary order that Hopkins could not be dismisssed before a further hearing which is expected to take place next week.
Oppression of a minority shareholder can mean excluding the minority shareholder from the affairs of the company; a denial of information; or ensuring a legitimate corporate opportunity is given to themselves or an associate.
AMA said it would be defending the legal proceedings but would not comment further.
No mention of the developing scandal was made at the November annual general meeting.
