14th Jul 2015 08:42
LONDON (Alliance News) - A unit of wealth manager Brooks Macdonald Group PLC has filed a claim against Origo Partners PLC in the latest round of the ongoing dispute between the two companies.
Brooks Macdonald Asset Management (International) Ltd has made a claim related to a clause in Origo's articles of association related to the conversion of preference shares.
In June 2014, Brooks Macdonald raised a complaint about a resolution that was passed at the company's general meeting in March 2011 to amend the company's articles of association. Brooks contends that as the resolution was not validly passed it would have a legal claim for the return from Origo of the consideration it paid for the purchase of 60 million convertible zero dividend preference shares.
The dispute hinged on the assertion that a 75% resolution, which would need to be passed to amend the company's articles, requires a majority of holders of 75% of all issued and outstanding shares to have voted in favour of it, rather than a majority of 75% of votes cast.
Brooks said it hopes a consensual resolution can be reached on the claim and is working with Origo towards this.
On Friday last week, Origo Partners said the Isle of Man Court has judged in its favour in the dispute with Brooks MacDonald and also said it was trying to settle the matter.
"The company remains committed to attempting to work with holders of convertible zero dividend preference shares in the company to achieve a mutually acceptable resolution to concerns raised," Origo said in a statement on Friday.
Shares in Brooks Macdonald were down 0.1% to 1,731.50 pence on Tuesday, while Origo shares were down 15% to 3.50p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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