27th Sep 2019 18:20
(Alliance News) - LMS Capital PLC said Friday it will allow the reappointment of Gresham House Asset Management as investment managers to face a shareholder vote, amid rival claims the company should take management in house.
LMS secured new terms with existing manager GHAM which would see the annual management fee reduced.
An alternative proposal, however, was submitted by Non-Executive Director Robert Rayne in which LMS terminate the GHAM deal and take management of the portfolio in house. The independent members of the board reviewed this alternative proposal, but unanimously concluded the reappointment of GHAM was in the best interest of the firm.
Rayne - current chair of Derwent London PLC - continues to support self-management of the firm, however, and stated that a number of other shareholders support his view.
Consequently, LMS will make the reappointment of GHAM as investment managers a subject of shareholder approval. Details of the proposals and the voting process will be sent out "as soon as possible."
Shares in LMS closed 1.1% lower at 54.62 pence in London on Friday.
By Ahren Lester; [email protected]
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