The fate and destiny of electric ATV and scooter manufacturer Vmoto rests in the hands of angry shareholders this month as they vote on a bid to fire the company’s entire board of directors.
Most of Australian-owned Vmoto’s operations and management are in China. A group of shareholders believes the longstanding strategy of making quality, European-style vehicles is giving way, they say, to producing Chinese knockoffs. Vmoto directors say their challengers are threatening the company's future just when it’s trying to tap into the booming global market for electric scooters. (The company exhibited at EICMA earlier this month.)
Melbourne investor Russell Goodman - Vmoto's biggest shareholder as of June 30 and former chairman - has called an extraordinary general meeting for Nov. 29 in Perth, seeking to replace the board with himself and two supporters, according to The West Australian. Two weeks before that at the company's annual meeting, most of the challenged directors are seeking re-election.
Despite a few successes like Domino's Pizza giving Vmoto electric scooters a whirl in Australia, Vmoto has had net losses of more than $4 million in each of the past three years and is now valued at less than $14 million.
Posted by Holly Wagner
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