28th May 2015 08:40
LONDON (Alliance News) - Mwana Africa PLC Thursday threw an independent report into the ring that supports the company's view that shareholders should vote against all the proposals made by Ian Dearing at an extraordinary general meeting to be held in June.
The meeting will be held on June 9 for shareholders to vote on changes to the non-executive directors after notices requisitioning a general meeting were received from Dearing and other shareholders in April. The company was initially looking at the validity of the meeting request.
On Thursday, Mwana said Institutional Shareholder Services Inc, a provider of corporate governance services and governance research, has published a report that supports the company's view that shareholders should vote against the proposals made by Dearing and the group of shareholders.
"The dissident's main argument is that the current directors have been unable to settle the dispute with the company's largest shareholder without going to court. It is unclear, however, why the dissident nominees would be better able to reach such a settlement. We also note that this proxy contest is scheduled to take place before the deadline set by the court to reach a settlement," the ISS report said.
The argument that Dearing and the shareholders are referring to is between Mwana Africa and its largest shareholder, China International Mining Group Corp, and with Mwana Non-Executive Yat Hoi Ning, who is also the chairman of China International. The dispute is about Mwana Chairman Stuart Morris being re-elected to the board in September 2014.
The company has previously said that neither Ning or China International were involved in the requisition of the meeting by Dearing or the other shareholders.
The ISS report concludes that "the dissident has not met their burden of proving that significant change on the board is warranted."
"We welcome this report published by an independent and respected authority on corporate governance matters and believe it provides further support to the board's position as outlined in the circular. We continue to encourage shareholders to vote in support of the company and against all the requisitioner's proposed resolutions at the forthcoming extraordinary general meeting," said Morris Thursday.
Mwana shares were untraded on Thursday, last trading at 1.90 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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