21st Jun 2019 18:58
(Alliance News) - Boohoo Group PLC said Friday all of the resolutions at its annual general meeting passed.
BooHoo noted resolution 13, which sought authorisation to buy back 10% of the online retailer's issued share capital, passed. Resolution 13 was contingent on independent shareholders approving resolution 14 - which was a "whitewash resolution".
Following resolution 13, the Kamani family - including Chief Executive Mahmud Kamani - will end up with a 33% holding in the company. If Boohoo were to exercise the 10% buyback, the Kamani family's shareholder will rise to 37%.
But, thanks to resolution 14, they will not be required to make an offer for the rest of the company's shares which they do not own.
Over 67% of the shareholders voted for resolution 14, which was 394.9 million shares, with 33% voting against, represented by 190.0 million shares. Over 353.0 million shares withheld their vote on the resolution.
Boohoo added: "The board would only exercise such authority if it considered that the effect of such purchase would be to increase earnings and that such exercise would be in the best interests of shareholders generally. In addition, the board would only exercise the authority if it was satisfied that the company had at the time such purchase is contemplated, sufficient cash resources for current working capital purposes and distributable reserves and there would be no requirements for financing from third parties for this purpose."
Shares in Boohoo closed 0.4% higher Friday at 219.20 pence each.
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