Junior potash and nitrogen developer Karnalyte Resources Inc., Saskatoon, reports that disputes over its governance continue, even after a shareholder vote late last year that turned aside proposed changes by dissident shareholders (GM Dec. 18, 2020). Karnalyte said on Feb. 1 it received an originating application filed by Peter Matson and Gregory George Szabo against Karnalyte, major shareholder Gujarat State Fertilizer and Chemicals Ltd., each of the current directors of the company, the Interim CEO, and a former director.
Among other things, the applicants are seeking a declaration that Karnalyte oppressed its shareholders; the removal of all current directors; fixing the size of Karnalyte’s board at six; appointing Joe Vidal, Neil Yelland, Joe Clavelle, Todd Rowan, and two GSFC nominees; reimbursing all costs incurred by the applicants and Mark Zachanowich in connection with requisitioning the special meeting of shareholders held on Dec. 15, 2020; and damages in the amount of $3.25 million.
Karnalyte said it is thoroughly assessing the application with legal counsel and is considering all available recourse. The application was filed with the Court of Queen’s Bench of Alberta.