THE ousting of chief executive Kevin Hart and four other Bowleven directors from the board closed the most dramatic chapter in a saga that has made at times painful reading for shareholders. Some investors will be excited by the prospect of the payouts which the rebel investors who led the campaign for change at the firm said could follow the revolution they stoked. Crown Ocean Capital is likely to portray the votes in favour of the bulk of the boardroom changes it proposed as shareholder activists holding an under-performing management team to account. But shareholders rejected the call for the removal of Bowleven’s chairman Billy Allan, who said before the vote that Crown Ocean wanted to turn Bowleven into a cash dispenser for its own benefit. Mr Allan also insisted Bowleven was on the path to creating significant value for shareholders in Cameroon. As two newcomers have joined him and chief operating officer David Clarkson on the board shareholders may have to wait some time before Bowleven decides what to do next. Mr Hart remains chief executive. If Bowleven distributes all its remaining $95m cash pay outs would be worth around 30 cents (25p) for each share in issue. Bowleven raised £55m at 650p per share in 2005. In his ten years in charge Mr Hart has completed fund raisings at up to 327p per share. The company has yet to bring any of its discoveries on stream. Its experience provides a salutary reminder for investors of the potential risks involved when they back junior oil and gas companies.
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