Rebel shareholders demand resignation of Izodia directors

Rebel shareholders in Izodia, the cash shell that previously developed and sold software, have called a special meeting to oust all of the group's directors in a bid to get their hands on the company's cash.

Shareholders controlling 10.7 per cent of Izodia, formerly known as Infobank, have called an extraordinary general meeting to oust the current management team, calling their strategy "misconceived".

Laxey Partners, JO Hambro Capital Management and Nicholas Greenwood, who together own about 6.24 million shares in the company, said they were looking to appoint a new board.

"The requisitionists believe that the current board's proposed strategy is misconceived and not in the best interests of the majority of the company's shareholders," they said, adding a new board would take measures to return cash to shareholders "as soon as possible".

The move comes less than a week after Izodia said it was looking for an acquisition, that could well be classified as a reverse takeover rather than return money to investors.

It said then that it considered the option of returning cash to be "premature" when there was also the prospect of "enhancing value for all shareholders by a substantial acquisition".

Shares in Izodia, which announced in July it planned to shut up shop and turn itself into a cash shell, rose 4p to 39p.

Laxey Partners, also the leading rebel shareholder in British Land, has demanded that John Ritblat stand down as chairman and chief executive of the property company.