(Alliance News) - Private equity firm LMS Capital PLC said Thursday three non-executive directors resigned after the resolution to reappoint Gresham House PLC as investment manager for the firm was rejected by shareholders.
In total, 58% of the votes cast were opposed to the re-election of Gresham House to manage LMS. The remaining 42% voted in favour of reappointment.
In response, Non-Executive Directors Martin Knight, Neil Lerner and Rod Birkett all resigned from LMS. The non-executives had previously confirmed they would stand down should the resolution not pass.
LMS did emphasise, however, that the departing directors "note that a very substantial majority of shareholders that are independent of the Rayne family holding approved the resolution and supported the recommendation."
LMS Non-Executive Director Robert Rayne - who owns a 42% stake in LMS with his family - has been pushing for management to be brought in house.
Shares in LMS closed 8.4% lower at 49.00 pence in London on Thursday, Gresham House up 0.7% at 614.00 pence.
By Ahren Lester; ahrenlester@alliancenews.com
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