Led by paper and printing industry veteran Andrew Price, the group have asked that Boon be removed because of "concerns at the way the business is being managed" and that Price be appointed as director.

The group served Paperlinx with a notice to call an Extraordinary General Meeting in order to establish the views of other shareholders, likely to happen within two months, after an unsuccessful meeting with the company today (3 Feb).

Paperlinx executive general manager, Corporate Affairs, James Orr told PrintWeek sister title ProPrint: "I can confirm we have been served with a notice. It was very late in the day and we really have not had a chance to work through it and consider it.

"We will obviously comply with our legal obligations, but, really, the directors have not had a chance to consider it.

"It is worth pointing out our interim results are due on 22 February and we are intending to give a fulsome overview of our results and the strategic review, but this notice has been served on us late in the day," he added.

Price, formerly of print management firm Stream Solutions, said he was disappointed that the business "has to incur these additional costs" through the group's actions but "given the dismal performance of Paperlinx in recent years, it's not unexpected".

He added: "I see enormous opportunities for the Paperlinx business, if managed correctly, and I am prepared to take an active role in returning the company to profitability."

Tom Elliott, analyst at Beulah Capital said: "No conspiracy here - [Price] just represents a group of understandably aggrieved shareholders."  

Shares in Paperlinx have dropped to 7c from a high of AUD$5.37 in 2003 and the business is currently undergoing a strategic review run by merchant bank UBS and has already received a number of offers for all or parts of the company.

Elliott said that the situation had been further antagonised by the different motivations of ordinary shareholders and preferential shareholders who have "the whip hand in any sale, as a condition of their securities is that they get $100 in any 'change of control' event".