Answers demanded from Boon and Price in Paperlinx battle

Paperlinx leadership contender Andrew Price has issued another challenge to chairman Harry Boon – as prominent critic Graham Critchley has issued a challenge to both men.

Price is hoping to overthrow Boon at an Extraordinary General Meeting on 23 March, while Critchley is campaigning for hybrid holders who have seen the value of their securities plummet from $100 to $17.

Critchley, an investor in Paperlinx's hybrid securities, sent 14 questions to Price and Boon on Monday covering strategy and corporate governance, giving them a deadline of 4pm tomorrow (Wednesday 7 March).

One question asked if they were happy that Paperlinx's five-person board had only one European representative when "about 70% of the company's business and 95% of its problems are in Europe".

Boon was asked why he didn't hold at least one year's salary worth of shares, as board policy dictated, and why he held six equivalent directorships, when the Australian Council of Super Investors recommended a maximum of four.

He asked Price to explain how one man could make a difference to a business so "widespread and diverse" and to say which of his changes would become visible after three, six, 12 and 24 months.

Price told ProPrint this morning that he would answer Critchley's questions to the best of his ability, but as an outsider, he didn't have access to all the relevant information.

Paperlinx did not respond to ProPrint's inquiries.

Meanwhile, Price launched another attack on Boon on Monday, accusing the company of "hugely underperforming" under his watch.

"There comes a time when enough is enough. Shareholders have lost over 98% of their share value while Mr Boon, a director since 1998, continues to draw his director's fees with little or no accountability," he said.

Price also criticised Boon for having too many directorships and not enough shares.

"I always find it very telling how much 'skin in the game' directors actually have. A director's action often speaks louder than words," he said.

Paperlinx recently posted a half-yearly loss of $61 million, a six-fold increase on the prior corresponding period.

Paperlinx had not responded at time of publication.

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