18th Dec 2015 12:09
LONDON (Alliance News) - Baker Steel Resources Trust Ltd on Friday proposed an extraordinary general meeting to seek approval to amend its investment policy, which would allow it to increase its investment in Polar Silver Resources Ltd.
Polar Silver is currently Baker Steel's largest investment; it has a 27.25% stake in it presently. However, Baker Steel's investment manager has advised that there is a disagreement as to how to develop Polar Silver's Prognoz asset in Russia between one of the other major shareholders of Polar Silver and the holder of the other 50% stake in Prognoz.
Baker Steel intends to increase its interest in Polar Silver to take majority control in order to remove the uncertainty and risk caused by the disagreement and continue to undertake further work at Pronoz.
Additionally, the company will propose an amendment to its articles in regards to directors. Its existing articles stipulates that a majority of directors shall be resident for tax purposes outside of the UK, and if such a majority no longer exists as a result of the death or resignation of a director, one or more directors resident in the UK must resign to restore the majority.
Director Edward Flood passed away in October. However Baker Steel said that following a recent change in UK tax legislation, it believes that it is appropriate for these requirements to be removed in order to give it greater flexibility over the composition of its board.
Baker Steel called the shareholder meeting for January 4.
Shares in Baker Steel were untraded Friday. It last closed at 13.30 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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