23rd Jan 2020 16:38
(Alliance News) - RDI REIT PLC on Thursday said one of its special resolutions has marginally failed to pass and others faced significant opposition at its annual general meeting.
Shares in the real estate investment trust closed down 1.3% at 135.00 pence in London on Thursday, having ended up 2.5% at ZAR25.00 in Johannesburg.
Resolution 15, to authorise directors to dis-apply pre-emption rights in connection with an investment, was a special resolution and fell just short of the 75% pass mark at 74%.
In addition, resolutions 13 and 14 also faced significant opposition. Resolution 14, a special resolution granting authorisation to dis-apply pre-emption rights up to the limit specified in the AGM notice, passed with 24% opposition and 76% approval.
Resolution 13, authorising directors to allot shares up the the AGM notice limit, was an ordinary resolution and was therefore able to pass with 25% opposition as only a majority was required.
RDI REIT said: "Following substantial votes against the same resolutions previously, management has had continuous dialogue with the major dissenting South African shareholders and has reduced the directors authority to issue shares from 66% in 2017, to just 10% in 2020. It is therefore disappointing that South African shareholders have voted against this resolution again but liaison with shareholders will continue in light of the fact that management believe it important to allow acquisitions to take place via share placements as opposed to holding cash pending investment, which could cause a drag on earnings in the short term."
In addition, 15% of shareholders objected to resolution 3, the re-appointment of Chair Gavin Tipper, as he is classified as "overboarded".
"The board considers Mr Tipper to be an exceptional chairman who has attended all scheduled and unscheduled board and committee meetings during the year. He took an active role following an approach from the Cromwell Property Group and was heavily involved in all material and strategic discussions during the past 12 months. RDI therefore has no concerns regarding his ability to devote sufficient time to the company," firm said.
By Anna Farley; [email protected]
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