The RAIZ Invest Ltd (ASX: RZI) share price is falling heavily on Wednesday morning.
At the time of writing, the investment platform provider's shares are down 16% to $1.66.
Though, despite today's heavy decline, the RAIZ Invest share price is still up an impressive 70% in 2021.
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Why is the RAIZ Invest share price crashing today?
Investors have been selling down the RAIZ Invest share price today following the release of a surprising announcement this morning.
According to the release, the company has received a request from BBH-GL Nominees to call a meeting of shareholders.
BBH-GL Nominees is a company associated with RAIZ Invest's Founder, Managing Director and CEO, George Lucas.
At the last count, BBH-GL Nominees held 4,458,338 RAIZ Invest shares, making it a substantial holder with greater than 5% of its shares outstanding. This gives it the right to call a meeting of shareholders pursuant to s249D of the Corporations Act (Cth) 2001.
Why is there a meeting being called?
BBH-GL Nominees and Mr Lucas have requested the convening of a general meeting of shareholders to vote on a surprise resolution.
According to the release, the resolution is: "That pursuant to section 203D of the Corporations Act and clause 10.19(e) of the Company's Constitution, Nina Finlayson, Kevin A Moore and Kelly Humphreys are removed as directors of the Company with effect from the close of this meeting."
No details have been provided on why BBH-GL Nominees and CEO George Lucas want these directors to be removed.
It is also worth noting that one of these directors, Kevin Moore, is the RAIZ Invest Chairman and only joined the company on 1 December 2020.
For the Founder and CEO to attempt to remove his Chairman after less than a year, is not a good look for a company and hints at some major disagreements in the board room. Which certainly goes a long way to explaining the weakness in the RAIZ Invest share price today.
Further details are expected to be released ahead of the proposed meeting.
