3rd May 2016 16:27
LONDON (Alliance News) - Atlantis Japan Growth Fund Ltd has won shareholder support at its extraordinary general meeting after its investors rejected a resolution put forward by one substantial shareholder that was attempting to either restructure the firm or place it into liquidation.
LIM Advisors, which holds a 14.9% stake in Atlantis Japan Growth Fund, has previously attacked the performance and size of the London-listed stock and had said the planned continuation of the fund failed to address the discount at which the trust trades to book value; "extremely high" running costs; and an "unviable" size.
LIM wanted an opportunity for shareholders to exit their investment in the trust at close to its net asset value with a possible roll-over opportunity into an open-ended vehicle.
However, of the total votes cast at the EGM Tuesday, 56.27% of Atlantis Japan Growth shareholders rejected the resolution put forward by LIM to restructure and/or place the company into liquidation - meaning the resolution failed to pass as it needed at least 75% of the votes.
"The vote against the resolution comprised the majority of our largest shareholders as well as a significant number of smaller shareholders, including private individuals, who have clearly shown that they want to remain invested in the company under the management of Taeko Setaishi," said Atlantis Japan Growth Fund.
"We would ask all shareholders to respect the outcome of the meeting and allow us to continue to implement our strategy for improving the company's performance, further narrowing the share price discount and growing the company over the next three years," the fund added.
Although the resolution was rejected, Atlantis Japan Growth Fund has already pledged to give shareholders the opportunity to vote on whether or not the company should continue at the AGM in 2019.
Atlantis Japan Growth Fund shares closed down 3.6% to 133.0 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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