7th May 2015 11:57
LONDON (Alliance News) - Mwana Africa PLC Thursday said the Companies Court in London has granted a stay of proceedings to allow the company to have more time to reach a settlement with China International Mining Group Corp and Non-Executive Director Yat Hoi Ning.
The company also said it will hold a general meeting in either May or June in response to the requested meeting to vote on changes to the company's non-executive directors from Ian Dearing and other associates.
Back in December, shareholders China International and Yat Hoi Ning filed petitions at the High Court of Justice and Companies Court in London after one of Mwana's directors, Stuart Morris, was re-elected to the board.
The company held its annual general meeting on September 10 and a resolution to re-elect Morris was passed by its shareholders. However, votes from China International Mining and its associates, including Yat Hoi Ning, were not counted and were deemed inadmissible because the votes cast infringed the relationship agreement entered into with the company in 2012, it said in a statement in December.
China International Mining holds a 21.4% interest in Mwana Africa, whilst Ning holds a 7.6% interest.
In January, Mwana said it would continue "to attempt to work" with the shareholders to resolve the case with a "mutually acceptable resolution", but also said it would "defend its position vigorously in court if required".
At a hearing at the companies court in January, China International and Ning were given leave to file an amended petition that also seeks to challenge the appointments of Ngoni Kudenga and Herbert Mashanyare as non-executive directors in December.
On Thursday, The Companies Court granted a stay of proceedings until June 15 after all parties consented to an application for the extension. Mwana, China International and Ning will now try and reach a settlement before June 15, but court proceedings will continue if no settlement is reached.
In addition, Mwana said it has written to shareholder Ian Dearing, who is representing the requisitioning shareholders, to confirm its intention to convene a general meeting of shareholders in response to the requisition received in April.
Mwana had said it was "investigating the validity" of the requisition in April, but did state it planned to conduct a meeting. Mwana said a circular will be sent out on May 12, and the meeting will take place no later than 28 days after that.
Dearing and the other shareholders who have requested the meeting also are challenging the changes relating to the company's non-executive directors, but Mwana has previously stated that neither China International or Ning were requisitioners.
Mwana shares fell by 3.8% to 1.90 pence per share on Thursday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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