The Ronson Shareholder Action Group (RSAG) started up after the July2003 AGM for Ronson's 2002 results, and had promised a 2003 year of improving business, as confirmed by the CE's forward look in April. By May the Company was being less optimistic, new finance had not been found, a EEC embargo against their cheapie brand Oriental lighters was being threatened, and Farzad Rastegar (of Sunleigh fame/notoriety) and a 30% holder but unwilling to put any more money into Ronson, was suddenly in June announcing his intention to de-list the fully-listed shares, sell off the international trading/Ronson Trademark division and put the rest of the Group into receivership, and all without seeking any shareholder authorisation, nor giving any logical justification to shareholders.  The turn-around was unbelievably sudden: no figures for 2003 trading whatsoever, a blanket of silence descended because of the "Offer Period" for the proposed sale (no takers found through to end October), and a voluntary liquidation foreseen for the rest of the Group if that sale went through. Many shareholders attending the AGM were only then to learn that their holding had plummeted  to virtually nothing because the Listing Authority had ratified the de-listing approach (without requiring any form of shareholder approval), and de-listing was implemented days before the AGM took place! 

 

Originally the Action Group struggled to reach a 10% share pledge level  to be able to requisition an EGM which so far has been regularly spurned or denied by Rastegar, and he and the RSAG chairman are unable even to talk to one another as a result of some highly fruity exchanges and major character aspersions. The opening skirmishes have notably been over the news blanket that the diminished Board has imposed throughout: RSAG has given proof to Ronsons Registrars of its support being far in excess of the 10%. Rastegar tries to make out that no EGM should be held because of shortage of funds and refuses to recognise the leader of  RSAG and to meet with him.  The present deadlock is causing all sorts of bitter background enquiries and allegations. Meanwhile the termination of  Ronson's  lease of its Crawley head office has been newly announced this month, and Rastegar has transferred its activities to another company based in Ewell, under again a lack of any informative detail, and IT/accounting services transferred to another Rastegar company's based in Northants. This alone will show that major points of  dispute and differences in ambitions and motivations are already causing  alarming divisions between shareholders (8,500 in Ronson) and management, also racked by alleged conflicts of interest and managerial responsibilities, with Ronson possibly disintegrating while the haranguing drags on.