Nat Rothschild has resigned from London-listed coal miner Bumi after claiming board of the firm does not stand up for its investors.
Rothschild, who helped create the company in 2010, claimed in a letter to the board that chairman Samin Tan has been “complicit” in oppressing minority investors.
In his resignation letter, Rothschild expressed his disapproval over last week’s proposals from Indonesian shareholders the Bakrie family to end their relationship with the company.
According to the FT, Rothschild said it would be a “disgrace to proceed with, or even entertain the proposal” while the board was still investigating financial irregularities at Bumi Resources, which is a coal miner run by the Bakrie family.
Rothschild said: “You appear determined to drive through the Bakries’ proposal. I am afraid that I have lost confidence in the ability of the plc board to stand up for investors.”
Tan, who became chairman earlier this year after buying half the Bakries’ stake in Bumi, had also threatened to resign as chairman unless Rothschild stood down, according to people familiar with the dispute.
Rothschild still own 12 per cent of Bumi.
Bakrie spokesman Chris Fong described Rothschild’s resignation letter as “unfair, unreasonable and ridiculous”.
He said: “He’s the one who came to us. 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.”