A major shareholder of Dye & Durham Ltd. ramped up the pressure on two directors to resign, alleging the Canadian technology company has failures in its internal controls and governance practices.
Plantro Ltd., a company controlled by former chief executive Matt Proud, said in a news release that it’s aware of a whistleblower complaint alleging that management was pressured to adopt “aggressive accounting practices,” though it provided few specifics.
Plantro called for the resignation of chair Arnaud Ajdler and Tracey Keates, a director who is chair of the audit committee.
The board of directors pushed back against Proud, accusing him of trying to derail the company’s attempts at a turnaround by publicly disclosing confidential information.
“Unfortunately, the release of this information today appears to be yet another attempt by Plantro to disparage and distract” from progress being made to fix “legacy issues created under the leadership of Matt Proud,” Dye & Durham said in a statement. The company said it takes all whistleblower complaints seriously, but it didn’t comment on the substance of Plantro’s allegations.
The war of words is the latest chapter in a power struggle between Proud and the new board, which was installed last year with the backing of Ajdler’s Engine Capital. Proud stepped down as CEO after Engine received enough shareholder support to overhaul the board. Since then, he has started a campaign asking the company to put itself for sale, and he’s attempting to force a shareholders’ meeting.
“Remaining public is no longer a viable option,” Plantro said in a statement last week. “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, Dye & Durham said it’s focused on executing a turnaround after “years of disruptive debt-fueled acquisitions” under Proud.
Shares of Dye & Durham have fallen 45 per cent this year, giving the company a market capitalization of about $650 million.
Bloomberg.com
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2025-07-14 18:33:43
