Financier Nathaniel Rothschild has resigned from the board of miner Bumi, saying he had lost confidence in the management's ability to stand up for investors.
In his resignation letter he accused the company's Chairman of being "complicit" in oppressing minority shareholders.
It is the latest twist in a battle between Rothschild, who helped create the company in 2010, and the influential Bakrie family from Indonesia.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Last week the Bakries put a deal on the table which could have put an end to the fierce boardroom rift and ongoing concerns over corporate governance.
The company is currently investigating alleged irregularities at Bumi Resources, in which it has a 29% interest.
The Bakries proposed swapping their stake in Bumi for a stake of equivalent value in Bumi Resources, thus ending the relationship between Bumi and themselves.
However, in his resignation letter to Chairman Samin Tan, Rothschild said it would be a "disgrace to proceed with, or even entertain, the proposal" while the investigation at Bumi Resources was ongoing.
"You appear determined to drive through the Bakries' proposal," wrote Rothschild.
"I believe that this proposal is so obviously not in the interests of minority shareholders that I find it impossible to stay on as a director. I am afraid that I have lost confidence in the ability of the Plc board to stand up for investors."
Tan became chairman earlier in 2012 after buying half the Bakries' stake in Bumi.
Chris Fong, a Bakrie spokesman, told the Financial Times that Rothschild's resignation letter as "unfair, unreasonable and ridiculous".
"He's the one who came to us," Fong told the newspaper. "We came to London in good faith. We offered our business to him. He did the due diligence. We were very transparent and we put our own money in. In the end the truth will be told."
-
Adidas, Nike or Jordans - could collectable trainers make you rich?The right pair of trainers can fetch six figures. Here's how you can start collecting vintage Adidas, Nike or Jordans now
-
Early bird ISA investors flock to global funds, India and the USThere’s been an increase in investors maxing out their ISA at the start of the new tax year. But where are they putting their cash and why does it make sense to be an early bird investor?
