Private investors in technology company Tadpole Technology (TAD) are being urged to back management against a rebel former employee. The troubled company is set to seek shareholder approval next month to issue new shares for a ‘substantial’ fund-raising.

Now the private investors – as represented by the Tadpole Shareholders’ Action Group – fear former employee Steig Westerberg will block the move. Westerberg holds 5.2% of the shares, which may be sufficient to stop a resolution for a share issue.

Action group leader David Channon, who believes the company has a shot at recovery under a new management, says: ‘We are worried any challenge from Westerberg could divert time, money, attention and resource at the worst possible time.’

At June’s AGM a mystery investor, who is understood to have held a similar proportion of shares to Westerberg, managed to block some resolutions. Because Tadpole’s shares are widely dispersed among private investors who do not vote, Westerberg’s 5.2% is sufficient to win resolutions which are decided on proportion of votes made on the day.

Many private investors hold shares in nominee accounts and they will require a letter from their broker confirming they’re the beneficial owner to vote on the day. Channon says: ‘They may not confirm your holding until a meeting is held but you need to let the broker know you will be requesting your voting rights beforehand.’

Chief executive of Tadpole’s Streaming division Peter Bondar says an EGM to approve a share issue may be set shortly after next month's AGM on 8 November.

For more details contact David Channon at Nildes@gmail.com