Investors vote down proposal to change strategy and fire management.Several investors in the online TV streaming company, Quickflix, had proposed to get rid of current management team and its mail order DVD business.
However, the proposal was rejected by shareholder votes following yesterday’s extraordinary general meeting after several investor were a no show.
Just 10% voted in favour of firing QFX founder Stephen Langsford, along with senior execs Simon Hodge and David Sanders, and installing a new team of British and US directors, changing the strategy to online-only, and ditching the rental DVD business.
Guaranty Finance Investors, which is owned by a former Quickflix director Donald Campbell, was among the investors in favour of the proposal, reports AFR.
CEO Stephen Langsford, yesterday said: “we are pleased with the results of today’s meeting and that the Board matter is now resolved.”
“This has been a distracting time for the Board and management of the Company and has cost time and money when all our energies should be directed into developing our service, growing our business.”
He also said the online streaming company was “encouraged” by the level of shareholder support received.
“We do not take that support for granted. We respect the rights of shareholders and take our compliance obligations seriously. We also understand that shareholders expect to see a continued improvement in the Quickflix share price.”
Quickflix is committed to delivering improved financial outcomes through subscriber and revenue growth, and then profitability, he said.
He also said his company has a headstart over rivals, including Foxtel who are now entering the online movie and TV streaming space.
The recent availability of the Quickflix app on new PlayStation 4, Xbox One and Google Chromecast TV dongle were cited as among Quickflix, who has around 120,000 subscribers, new growth opportunities.
The potential market for streaming customers in Australia and New Zealand is three million customers and “could be a lot higher,” Langsford added.