The Intervid directors attempting to oust chairman Bill Lambert say that VenFin, which owns 17% of the company, has a disproportionate influence at board level.
Intervid board members hold different views on removing Lambert, with the majority - Mark Taylor, Wayne Jaggard and Johann Pieterse - recommending that shareholders vote against the proposal.
The move to oust Lambert came from the Howard family through three family trusts.
Last week VenFin, which also has a further indirect investment in Intervid International through a convertible bond held by associate RFS Holdings, came out in support of the majority recommendation. RFS is Intervid`s principal loan creditor.
Directors Rob Howard and James Howard say the Howard family made the move because the minority directors have lost confidence in Lambert`s shareholders.
They have also nominated three new directors - Richard Evans, George O` Reilly and Connie Howard - who they say will represent the views and interests of both major and minority shareholders.
"As the largest single shareholder grouping in Intervid, we feel that the influence of VenFin at Intervid board level is significantly disproportionate to its shareholding, and a more balanced board would be more advantageous for Intervid shareholders generally," they say.
The minority directors add that Connie Howard was a founder director of Intervid and represents the interest of the largest shareholding grouping.
VenFin said last week that its support, as well as that of RFS Holdings, was important for the future of Intervid until the company`s turnaround process translated fully into sustainable financial delivery.
It also warned that "should the Howard family not shortly propose a viable and acceptable alternative solution to Intervid`s future financing requirements, VenFin will have to reconsider its position in Intervid".
The VenFin share closed at 50c on the JSE on Friday, 5c down on Thursday`s close.
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