Don’t worry. Ken is physically fine. The featured picture is just a well-known meme in corporate circles but metaphorically summarises the latest events at farming tech company RLF AgTech (ASX: RLF) which has commenced the process to forcibly remove Kenneth Hancock from its Board of Directors. 

Hancock’s employment as Managing Director was terminated on 4 June 2024 after 7 years in the role, but he had not resigned from his position on the Board, nor was any reason provided by the Company for the sudden termination. 

Subsequently, RLF’s Board of Directors has issued a notice under section 203D of the Corporations Act 2001 (Cth). The notice, signed by Chairman Donald McLay, Acting Managing Director Gavin Ball, and directors Liza Carpene, Paul McKenzie, and Shen Lu, indicates their plan to call a general meeting of shareholders. During this meeting, they will propose an ordinary resolution for Hancock’s immediate removal.

The resolution reads: “That, pursuant to section 203D of the Corporations Act, Mr Kenneth Graeme Hancock be removed from office as a Director of the Company with immediate effect.” 

For Hancock to be removed, more than 50% of submitted votes must vote in favour of the resolution. 

RLF AgTech provides innovative solutions aimed at enhancing crop productivity and sustainability. The Company focuses on the development and distribution of advanced plant nutrition products, employing cutting-edge research to support farmers in maximising yield and efficiency while reducing environmental impact. RLF AgTech’s portfolio includes specialised fertilisers and biostimulants designed to improve soil health and plant growth.

The upcoming general meeting, as stated in the notice to be released via the ASX at least 30 days before the general meeting, will provide shareholders with detailed reasons behind the Board’s move. Additionally, Hancock will be offered an opportunity to have his own statement published in the notice as per his right under the Corporations Act.

This public disclosure of an internal board conflict is unusual and may raise questions about the dynamics and governance within RLF AgTech, a company otherwise noted for its contributions to the agricultural sector.

RLF AgTech is in the process of a Share Purchase Plan where eligible shareholders (1 May 2024 Record Date) can subscribe for new shares at $0.06 per share, with the Company seeking to raise up to $1.11 million. 

RLF shares closed yesterday at $0.043. 

In his most recent Change of Interest notice on 20 May 2024, Ken Hancock disclosed that he had reduced his shareholding of RLF from 40.28% to 32.50%. As of that notice, he still held 74,503,259 RLF shares.