Former CEO Calls for Board Resignations at Dye & Durham

A significant shareholder of Dye & Durham Ltd., a Canadian technology firm, has intensified calls for the resignation of two board directors, citing serious concerns over internal controls and governance practices. Plantro Ltd., a company led by former chief executive Matt Proud, issued a statement revealing awareness of a whistleblower complaint. This complaint alleges that management faced pressure to implement “aggressive accounting practices,” although specific details remain scarce.

Plantro’s announcement specifically targets chair Arnaud Ajdler and Tracey Keates, the chair of the audit committee, urging their immediate resignations. A spokesperson for Dye & Durham did not respond to requests for comment on the matter as of Monday.

Power Struggle Unfolds

This situation marks the latest development in a power struggle between Proud and the newly established board, which took office last year with the backing of Engine Capital LP, the investment firm led by Ajdler. Proud stepped down as CEO after Engine secured sufficient shareholder support to revamp the board. Following his departure, he has been advocating for the company to consider a sale, claiming that remaining publicly traded is no longer a viable option.

In a statement released last week, Plantro emphasized, “A full sale of the company is the only way to realize a control premium for current shareholders and restore stability in the business.”

In response to these challenges, Dye & Durham has stated that it is concentrating on executing a turnaround strategy after enduring “years of disruptive debt-fuelled acquisitions” under Proud’s leadership. The company’s shares have experienced a decline of 45% this year, resulting in a current market capitalization of approximately $650 million.

As the situation develops, shareholders and market observers will be watching closely to see how the board responds to the mounting pressure and whether a resolution can be achieved that aligns with the best interests of the company and its investors.