The Raiz Invest Ltd (ASX: RZI) share price is pole-vaulting higher on Thursday.
At market close, the investment platform provider's shares are up 9.30%, trading at $1.88. This follows a sharp share price fall on Wednesday after a surprise move to remove certain directors from the Raiz board. Catching shareholders off guard, the Raiz share price tumbled 13.1%.
Getting outsted by the founder and CEO
Investors of Raiz must feel as though yesterday's selloff was overdone as the share price regains today.
The surprise announcement sprung on shareholders entailed a 'Section 249D Notice' from BBH-GL Nominees Pty Ltd. For context, this company is associated with Raiz's founder and CEO, George Lucas.
According to the share registry, Mr Lucas holds 5.12% of total shares on issue through his holding company. Because of this, Lucas is able to propose the removal of all or certain directors.
According to the release, the proposal is to remove 3 out of the 4 other board members. This includes Nina Finlayson, Kevin Moore, and Kelly Humphreys. Undoubtedly, such an unpredictable move has introduced volatility to the Raiz share price.
Upon receipt of the notice, the Raiz directors have 21 days to call a general meeting. Additionally, a further 21 days' notice of the meeting is required to be given to shareholders. In trying to fit within these constraints, the meeting must also be held within 2 months of the company receiving the notice.
Unfortunately, shareholders still remain in the dark as to why Mr Lucas has proposed the swift removal of these directors.
The announcement finished by stating further details will be provided in due course.
Raiz share price snapshot
The Raiz share price has performed exceptionally over the past 12 months. Specifically, this Aussie fintech has surged 133% over the past year.
As a result of the phenomenal performance, the company now commands a $150 million market capitalisation.
