This move comes in the wake of a disastrous annual meeting held two weeks ago, in which the company’s proposed name change to Wollemi Energy was voted down and director Robert Carroll was not re-elected.

Following the meeting, the board said it believed a group of shareholders controlling more than 20% were acting in concert and called a trading halt while it conducted an investigation.

Yesterday Sydney Gas reported it had received a notice from “holders of more than 5% of issued shares” requesting an extraordinary general meeting to remove directors Michael Knight and Bruce McKay and to appoint Michael Norster and Warren Eades.

It is believed that the “holders of shares” referred to is Chimaera Capital Limited, which holds 12% of the company.

Sydney Gas’s three directors – former Olympics minister Michael Knight, managing director Andrew Purcell and independent director Bruce McKay – all opted to leave voluntarily rather than be ousted out by dissident shareholders at an extraordinary meeting. The resignations are effective as of noon today, Sydney time.

Following their resignation, Michael Norster and Warren Eades – who were both nominated by Chimaera at the AGM – were appointed.

Chimaera director Ian Pattison said he was disappointed that Purcell had resigned, as the group was only seeking to get rid of Knight and McKay, according to The Sydney Morning Herald.

Norster is a former chief executive of Melbourne electricity retailer Australian Energy. Eades had served on the board of now delisted Pacific Strategic Investments with mining identity Peter Newton, a Sydney Gas shareholder.

The unhappy investors were understood to have been dissatisfied with a deal arranged with energy retailer AGL by Knight without shareholder approval. But AGL maintains the deal is legally binding.

Within a few months, Sydney Gas will have to repay $30 million of convertible notes, but following the AGM debacle financiers are steering clear of the company.

AGL took up an option to underwrite the notes until December 31 but if Sydney Gas cannot find the $30 million by then, AGL could take control of ‘some or all’ of the remaining interest in its Camden project.

If Sydney Gas's auditors cannot finance the convertible notes, which are due in April and June next year, it may no longer be a going concern, its auditors told the newspaper.