1st Apr 2015 07:10
LONDON (Alliance News) - Mwana Africa PLC Wednesday said the requisition made by some of its shareholders for a meeting to vote on a number of changes to the non-executive directors at the company is invalid after one of the shareholders withdrew their requisition.
On March 2, the company said it had received requisitions from Ian Dearing and other shareholders to convene a general meeting to vote on resolutions "to approve a number of non-executive director changes to the board of directors of the company," said Mwana. No specific details were provided about the exact resolutions that would be voted on.
Mwana Africa currently has six non-executive directors, including Interim Non-Executive Chairman Stuart Morris.
On Wednesday, Mwana said it has concluded that the requisition is invalid and said the requistioners "do not have sufficient support" to force the company to hold a meeting after one of the shareholders withdrew their requisition, it said.
"Following the withdrawal from the requisition of one of the original parties, the requisitioners do not have sufficient support at the current time to require the directors to convene a general meeting under the (Companies) Act (2006)," said the company.
Under the Companies Act, members calling for a meeting must hold a majority stake in the business.
Dearing's shareholding in Mwana is unknown, but according to the company's website, it is below 3.1%.
However, Mwana also said that it has received correspondence from lawyers representing Ian Dearing which disputes Mwana's claims. The company said Dearing is "threatening to attempt to try and convene a meeting of shareholders under section 305 of the Act," something which the company rejects.
Mwana advised shareholders to take no action.
The company has previously made clear that neither China International Mining Group Ltd, which holds a 21.4% stake in Mwana, or Non-Executive Director Mr Yat Hoi Ning, who holds a 7.6% stake, are requisitioners.
In 2014, both Yat Hoi Ning and China International bought a case against the company over the passing of a resolution to re-elect Stuart Morris as interim non-executive chairman at the company's annual general meeting in September, claiming that the resolution was not validly passed.
In January, Mwana said it would continue "to attempt to work" with both China International and Yat Hoi Ning to come to a "mutually acceptable resolution," but also reiterated that its position remains unchanged in regard to the proceedings, and it will "defend its position vigorously in court if required".
Mwana Africa shares were untraded early on Wednesday, last trading at 1.80 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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