Sefton Resources believes there has been an aggressive dissipation of funds leading up to the appointments of chief executive Clem Chambers and non-executive director Michael Hodges on 23 October.
An update says Chambers and Hodges have not received material hand-over information and have yet been unable to take full control of the company's functions.
They are currently working on reconstructing the necessary access and information and due to a lack of cooperation from the previous administration; this will be likely be a long process.
Consequentially the annual general meeting will be delayed and depending on progress, the AGM will be held in the first half of December.
The company says that while an announcement on 23 October mentioned a bank position of $504,300, the actions of the board leading up to Chambers and Hodges' appear to be to the serious detriment of shareholders and 'leads us to fear the worse'.
The company says the board continues its search for a nominated adviser but after an already exhaustive search it seems unlikely one will be found.