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JSM faces shareholder resistance

JSM Indochina&rsquo;s shareholder, San Francisco-based investment firm Passport Capital yesterday said it has called for an emergency meeting of the AIM-listed property firm&rsquo;s shareholders to overhaul the board of directors.<br /><br />Passport, which owns a 13.4 per cent stake in JSM said there were &ldquo;serious corporate governance failings and the lack of transparency on matters of concern to all shareholders.&rdquo;<br /><br />The allegations include that chief executive Craig Jones being paid his salary in advance without disclosure or explanation to shareholders; a $5m personal loan paid to Jones from the company without shareholder disclosure and the use of his shares as collateral for a personal loan. <br /><br />Passport also believes JSM has failed to use significant invested capital in the group in accordance with the company&rsquo;s investment strategy.<br /><br />Passport is calling for the removal of JSM&rsquo;s chief executive Craig Jones, chief financial officer Rowell Tan and director Michael Tanner. Passport said its move followed a lack of response to concerns by the JSM&rsquo;s board.<br /><br />JSM did not respond to calls.