by Mike Caswell
The dispute between St. Elias Mines Ltd. and a group of Alberta-based dissidents has landed in the Supreme Court of British Columbia, with the dissidents complaining that the company has unfairly disallowed two of their nominees. The dissidents say that St. Elias refused to allow James Rainbird and Richard Defreitas to seek election at the company's Dec. 27, 2012, annual general meeting. They contend that St. Elias had no good reasons to disallow the nominees, and are asking for a court order that would effectively allow the dissidents to seek election.
The dissidents, led by shareholder Gilby Hastman, have been seeking to replace St. Elias's entire five-member board. They say management has taken significant stock-based compensation and incurred large expenses as the stock has dropped to 11 cents from $2. The dissidents initially proposed three new directors, but then learned that all five director positions were coming open, so they added the two nominees that are now in dispute.