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(Alliance News) - Burford Capital Ltd on Wednesday urged its shareholders to approve resolutions proposed for its annual general meeting, asking for cooperation in its move to a dual UK-US listing.
The global finance & asset management company, with a focus on law, said it is amending its articles and long-term incentive plan so that they are "fit for purpose for Burford's anticipated US listing".
Many of the firm's articles have not been amended since the company was founded more than ten years ago and "are inconsistent with US practice". Burford said it has also taken the opportunity to refresh articles so they are in line with best practice in Guernsey.
"By moving to a dual listing, shareholders in both countries will need to find common ground to arrive at a mutually viable set of articles for the company. There are governance points that are commonplace in the UK that would not be typically seen in the US and vice versa. Rigid adherence to a UK market approach risks a situation where Burford's governance is too far afield from US norms for a US listing to be viable," Burford explained.
The firm has withdrawn a proposal to amend section 3.4 of its long term incentive plan rules, an amendment which had "attracted negative commentary from ISS and Glass Lewis". It said that while the changes were "commonplace in US practice" they were not needed for the move.
In terms of articles changes, Burford said: "It is the company's view that the proposed amendments to the articles, viewed holistically, improve the company's governance and provide additional significant protections to shareholders. For example, Burford is proposing to eliminate its staggered board and move to annual elections of all directors. Burford has also modernised the articles in numerous other ways, including specifically authorising shareholder proposals to be raised at AGMs and permitting shareholders to nominate candidates for directorships."
Burford's shares were up 3.9% at 452.99 pence in London on Wednesday shortly before midday.
By Anna Farley; annafarley@alliancenews.com
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