TORONTO -- A group of dissident investors says they're prepared to begin a court proceeding to recoup damages if Guyana Goldfields Inc. doesn't initiate legal action against chief executive Scott Caldwell by Wednesday.

The dissident group's letter says it has previously asked the board to "fully investigate" allegations of misconduct that were communicated to the current directors last year and as recently as March 22.

The group is led by Guyana Goldfields founder Patrick Sheridan, who was ousted as the Toronto-based company's executive chairman last year.

A proxy circular filed Monday by the company says a special committee of its board did a thorough, five-month investigation of Sheridan's allegations and concluded they were either false or without merit.

Caldwell has been Guyana Goldfields' president and chief executive since May 2013, mostly while Sheridan was executive chairman.

The company's current directors are urging shareholders to reject efforts to replace them with a board filled with Sheridan's nominees.

A public letter issued Monday by Guyana Goldfields ahead of a shareholder meeting on May 22 acknowledges that the company's share price has taken a toll as a result of a new strategy advanced by the current board of directors.

But the letter, signed by non-executive chair Rene Marion, says that the toll on Guyana Goldfields would have been much worse if the board hadn't taken steps to improve efficiency.