- The Supreme Court of Bermuda has issued an interim injunction against ASA Gold and Precious Metals Limited (ASA, Financial) directors Mary Joan Hoene and William Donovan to prevent unauthorized use of company resources.
- The injunction mandates the withdrawal of unauthorized SEC filings and stops interference with upcoming shareholder meetings.
- The order follows a U.S. District Court ruling which found that Hoene and Donovan violated federal law with an illegal poison pill adoption.
On May 8, 2025, the Supreme Court of Bermuda issued an interim injunction order against ASA Gold and Precious Metals Limited (ASA) and two of its directors, Mary Joan Hoene and William Donovan. This legal measure restricts them from unauthorized activities that could disrupt the Company's upcoming Special General Meeting scheduled for June 13, 2025, and the Annual General Meeting.
The injunction follows allegations by board member Paul Kazarian that Hoene and Donovan misused company resources by forming unauthorized board committees to nominate their preferred director candidates without full board approval. The court order requires them to withdraw recent SEC filings and cancel instructions to Broadridge Financial Solutions unless sanctioned by the entire board.
This development is set against the backdrop of a March 28, 2025 ruling by the U.S. District Court for the Southern District of New York, which found that ASA, along with directors Hoene, Donovan, Bruce Hansen, and Axel Merk, had breached federal law by adopting a non-compliant poison pill under the Investment Company Act of 1940. Nonetheless, Hoene and Donovan extended this poison pill policy, disregarding the court's decision.
The injunction is temporary and will remain effective until the Bermuda Court resumes proceedings on May 21-22, 2025, to decide further legal actions.
