Beleaguered Dunedin chocolate company Ocho had a stay of execution after a bid to place it into voluntary liquidation failed yesterday.
The company required 75% of support from shareholders to place the company into voluntary liquidation, but only received 70.69%.
Another 28.08% voted against the resolution and 1.22% abstained.
The vote was taken at a highly charged meeting on Wednesday in which the board decided to postpone the result by 24 hours while they verified the numbers.
A total of 36% of shareholders voted and Ocho states on its website it has more than 3700 shareholders.
Former managing director and chairman Jim O’Malley told the Otago Daily Times about 60% of shareholders did not vote and this was a group that needed to be taken into account.
He was "pretty confident" a lot of the 70% in favour of liquidating the company was "the chair’s proxy vote".
"Honestly, anybody who voted ‘yes’ doesn’t understand this company and made a major decision based on incomplete information.
"It was just a stupid idea, and luckily it didn’t go through."
Dr O’Malley believed that had he not put the alternative case on the table, Ocho "definitely would have gone into liquidation" and did not know why the proposal had ever been put in front of shareholders.
While he did not have a precise number, Ocho had less than $75,000 of outstanding liabilities.
There would be "no issue" for shareholders to fulfil a bond, and he believed the liabilities could be paid off within the next 18 months.
He was "more than happy" to again take on a leadership role at the company and believed "this time" he would get the outcome that everyone who had invested in Ocho wanted for Dunedin.
Ocho was "as best placed as it can be" to restore chocolate-making in Dunedin.
"It’s still small, but I think it’s actually exactly where I had wanted it to be when we started the company in the first place.
"I’m quite excited, actually, to go back into this challenge, ’cause I think this one will be actually really rewarding."
In a set of two statements sent to shareholders yesterday, the board confirmed they saw the result as a vote of no confidence, "and as such resign from our position as directors of Ocho Ltd effective as soon as new directors can be appointed".
They were now calling for nominations for new directors, and in the meantime would ensure staff wellbeing and facilitate the election process.
The Otago Daily Times made repeated attempts to contact Ocho board chairman Pete Lead yesterday.
He could not be reached for comment.
How they voted
Resolution to place Ocho into voluntary liquidation.
For: 70.69%
Against: 28.08%
Abstained: 1.22%
