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Plus SMS terminates contracts of CEO, CFO, citing breaches

Friday 10th October 2008

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Plus SMS Holdings Ltd., the unprofitable company that sells mobile phone services using Microsoft Windows Live, terminated the contracts of its chief executive and chief financial officer.

The company ended the contracts of Christopher Tiensch and Les Coates "due to material and fundamental breaches of their employment duties, obligations and agreements," Plus SMS said in a statement to the NZX.

Today's move continues a stoush between the board and the two executives, who have already tendered their resignations giving six months notice. Tiensch also resigned as chairman last month, according to a letter to the NZX from Christchurch law firm Clark Boyce. He was replaced by Robert Hunter.

The company, which posted a full-year loss of about NZ$7 million, may be in dispute with the executives over their entitlement to new shares.

At the Sept. 4 meeting, the director withdrew a resolution to issue Tiensch with 13.5 million new ordinary shares pending a second legal opinion on the validity of the transaction under the CEO's employment contract.

Tiensch "has given notice of his wish to arbitrate his entitlements (and) it would be inappropriate for the board to give any further comment in relation to those matters at this stage, it said.

Shares of Plus SMS, last traded on the NZAX market at 2.1 cents and have dropped 70% this year.

By Jonathan Underhill

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