Another hit lands on SCA

Tuesday, June 16, 2026

SCA is facing a shareholder challenge after Sandon Capital filed a motion to limit the board's power to appoint new directors until the November 30 AGM, following recent staff cuts and investor pressure. This dispute highlights growing tensions over the company’s leadership and could influence a potential takeover, as key investors prepare to contest control at the upcoming meeting.

SCA continues to face significant challenges following recent staff reductions and renewed pressure from major investors. After announcing the redundancy of approximately 300 employees last week, the media company is now confronting a fresh salvo from Sandon Capital, a substantial shareholder. On Friday, Sandon lodged a motion seeking to restrict the SCA board’s ability to appoint new directors without shareholder approval, effectively aiming to curb board operations until the annual general meeting (AGM), scheduled for November 30.

The motion invokes section 203D of the Corporations Act and stipulates that any director appointed to fill a casual vacancy between June 9 and the AGM must stand for election at the next shareholder meeting. The resolution, supported by One Fund Services Limited and Management Investment Funds Limited, who claim registered holdings exceeding five percent of SCA’s ordinary shares, also proposes the removal of any directors appointed during this interim period immediately after the AGM.

In response, SCA has stated that the motion will not affect the resolutions slated for consideration at the AGM and emphasized that any directors appointed between June 9 and the meeting would be required to seek shareholder endorsement in any case. The company also noted that it has not received any formal request to call a general meeting to address these resolutions in advance of November’s AGM.

Market speculation around a potential takeover of SCA has intensified amid these developments. Bruce McWilliam, a former executive at Seven West Media, is reportedly exploring opportunities to acquire significant shareholdings in the company. His efforts are believed to have the backing of billionaire Gina Rinehart, a prominent investor with vested interests in the media sector. Despite this emerging contest, Kerry Stokes remains at the helm of SCA as of now.

The ongoing shareholder dispute underscores the turbulence within SCA’s governance structure and reflects broader uncertainty surrounding its strategic direction. With multiple investors vying for influence, the forthcoming AGM is likely to be a critical juncture for determining the future leadership and control of the company.