21st Aug 2025 10:36
(Alliance News) - Gore Street Energy Storage Fund PLC shareholder RM Funds on Thursday said a "material proportion" of the fund's register backed its proposed board changes at the company's general meeting on Wednesday, as it noted "considerable shareholder frustration" and called for its chair to step down.
RM Funds is an Edinburgh-based specialist asset manager focused on alternative investments and is a long term shareholder in the London-based investor in utility-scale energy storage projects.
On Wednesday, Gore Street Energy said all four resolutions proposed by RM Funds failed to pass at the requisitioned general meeting, with the majority of shareholders voting in line with Gore Street Energy's board recommendations.
RM Funds had proposed the appointment of Brett Miller and Ian Dixon as independent non-executive directors, as well as the removal of Non-Executive Directors Patrick Cox and Caroline Banszky.
The proposed appointments of Miller and Dixon were voted against by 69.52% and 67.03% of participating shareholders respectively. The proposed removals of Cox and Banszky were voted against by 69.26% and 69.30% of participating shareholders.
On Thursday, RM Funds noted that each resolution received around 100 million votes in support, representing a "material proportion" of the company's register. It said this indicates "considerable shareholder frustration with the status quo", and reinforces "continuing concerns around governance, strategy, and the lack of alignment between the board, the investment manager, and shareholders".
The specialist asset manager continued, stating that it received "unsatisfactory responses" to questions raised at the meeting.
RM Funds said Gore Street Energy Storage failed to provide clarity when asked about reports of conversations with certain shareholders relating to a strategic review in light of a persisting discount to net asset value.
It added that the board acknowledged that its investment manager had met with candidates in consideration for board roles, excluding its own nominees.
"In our view, the board's role is not to cultivate close relations with the manager, but to hold the manager to account on behalf of shareholders," said RM Funds.
On Wednesday, Gore Street Energy reported plans for "board refreshment", following shareholder engagement. It said "the first new appointment is anticipated imminently, and a further appointment in 2026".
RM Funds also expressed frustration at the fund for refusing to disclose costs tied to its proxy campaign.
Further, the asset manager said the fund's board failed to provide detail on the inclusion of a "poison pill" provision in the company's investment management agreement.
A poison pill is a defensive measure taken by companies to defend against takeovers. It commonly involves issuing more shares to shareholders, excluding the hostile entity in the process and therefore diluting their ownership interest.
RM Funds said it would be "appropriate" for Chair Patrick Cox to step down immediately, stating that the level of opposition reflects "a serious loss of confidence in leadership".
It further noted that it remains committed to constructive engagement to improve governance, restore value and alignment with the manager and shareholder interests. It added that it will continue to hold the board to account over the persistent discount and share price underperformance.
Shares in Gore Street Energy Storage were 0.5% lower at 60.70 pence on Thursday morning in London. They are up 1.2% over the past 12 months, but down 43% over the last five years.
By Christopher Ward, Alliance News reporter
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