Forced selling by EOH directors faced with margin calls on geared positions, which collapsed the share price last week, drew heavy criticism from analysts on Monday. "If I had a board of directors doing that I would fire them. It puts the share price at risk," said Just One Lap founder Simon Brown. Although EOH’s actions were not illegal, they threatened acquisitive growth ambitions, since past acquisitions had been largely funded through share issuances, he said. Earlier in the day, EOH disclosed that the substantial drop in its share price — 35% on Thursday — was caused by margin calls against equity-financed transactions, including to two EOH directors. An investor receives a margin call from a bank or stockbroker if the value of a share they have bought with borrowed money falls below a certain level. The investor must then either deposit more money into the loan account or sell the asset to cover the margin call. Jehan Mackay, CEO of EOH’s public services division, had been for...

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