Intervid chairman Bill Lambert quit yesterday at the start of a meeting called to vote on a proposal to oust him.
CEO Mark Taylor, financial director Wayne Jaggard and non-executive director Johann Pieterse also stepped down.
The special general meeting was called by major shareholders the Howard Family Trust, the James Howard Family Trust and the Kate Howard Family Trust, who proposed a vote to remove Lambert as chairman.
Also on the agenda were proposals to elect three non-executive directors nominated by the Howard family - Richard Evans, George O`Reilly and Constance Howard. That resolution was passed.
Taylor and Jaggard say they resigned as directors during the meeting because they are no longer comfortable about the ongoing financial support Intervid needs to remain in business.
Intervid`s financial results for the six months to end-December were released this morning. Although losses during the period were less than those of the prior-year period, Taylor and Jaggard, who presented the results, paint a gloomy picture of the group`s prospects.
The Intervid share fell sharply over the past two days. By noon today it was trading at 37c, losing 14c since yesterday`s close, which itself was 9c down on Friday`s closing price of 60c.
The improvement during the six months was, they say, the result of a turnaround programme that is likely to be jeopardised by "the current shareholder agreement and resultant pressure from Intervid`s financiers".
Warning
VenFin, which owns 17% of Intervid and an indirect investment in Intervid International through a convertible bond held by associate RFS Holdings, has made it clear that it opposes the Howard family`s actions.
It warned recently that it would reconsider its position in the company should the Howard family not propose a "viable and acceptable alternative solution to Intervid`s future financing requirements".
Intervid has been in talks with RFS Holdings regarding the capping of the number of shares that may have to be issued to it when the loan is converted into shares, as well as the continued access to funding in SA from Intervid International.
Recent talks with VenFin have centred on the underwriting of a rights issue.
Taylor and Jaggard say that a R21 million to R40 million loan agreement with VenFin has as one of its conditions the withdrawal by the Howard family of yesterday`s meeting.
Since the meeting went ahead, "this will give VenFin the right to withdraw from the loan agreement".
The group`s auditing firm, Ernst & Young, says it is "too soon to assess what impact the changes to the board, as well as any actions the new board may take, will have on the achievement of the budgeted cash flows and the continued support of bankers and financiers, and in particular whether the bankers will grant an extension of time to meet their requirements".
These factors, it says, could affect the ability of Intervid to remain as a going concern.
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