During the 8 February 2012 extraordinary shareholder meeting of German precision injection moulder Balda (Bad Oeynhausen; www.balda.de), majority shareholder Octavian Special Master Fund failed in its attempt to topple the company’s board and replace it with its own candidates. Although most of the meeting’s attendees confirmed the existing three-member board, it is highly unlikely that this will constitute an end to the internal quarrels.

For one, the German stock exchange supervision Bafin is in the midst of investigating the suspicious rise in share acquisitions ahead of the meeting – see Plasteurope.com of 07.02.2012. In addition, even before its initiative was voted down, Octavian reportedly said it would take all necessary means to topple the existing board.

The hedge fund is accusing the board of having repeatedly blocked the sale of shares in touchscreen producer TPK, and thereby acting in the interests of leading shareholder Michael Chiang, whose family also owns shares in TPK. Balda’s management now plans to launch a special investigation into whether specific company units did engage in misconduct to the detriment of company shareholders. The results of the inquiry are to be presented at the company’s scheduled general meeting in May 2012. Commenting on the investigation, board chairman Dominik Müser said, “The special investigation is a necessary step in creating transparency about the events that transpired in 2011 and to bring to an end all speculations.”

Indeed, Balda desperately needs to turn its focus on everyday business again. In Q4 2011, the company suffered significant losses and media reports indicate that management is only expecting a return to more positive spheres by 2013.