(Alliance News) - London West End-focused property investor Shaftesbury PLC noted Tuesday that its largest shareholder, Samuel Tak Lee, has declared that he will vote against several resolutions to be proposed at the company's annual general meeting on Friday next week.
Tak Lee, which holds a 26% stake in Shaftesbury, said that he will vote against resolutions 15, 16 and 17, which would grant the company's board the right to issue shares.
The shareholder will vote against resolutions 2, 4, 5 8 and 19 as well. These are for the approval of the directors' remuneration report, the ability of Shaftesbury to call a general meeting on a 14-day notice, and the re-election of Brian Bickell as chief executive officer, Chris Ward as finance director and Jonathan Nicholls as chair.
"My previous letters set out in detail serious concerns which [Tak Lee's investment vehicles] had in relation to the non-pre-emptive share issue undertaken by Shaftesbury in December 2017. Those concerns remain despite ongoing requests for the board to address them," Tak Lee wrote.
"Having regard to the circumstances of the placing, I do not believe the current board can be relied upon to act properly in shareholders' best interests when undertaking future share issues unless they first seek and obtain specific authority at the relevant time," he added.
In June Shaftesbury had been served legal proceedings by Tak Lee.
The proceedings are related to allegations and claims relating to a December 2017 share placing conducted by the group.
In this placing, Shaftesbury issued 27.9 million shares at a price of 952 pence per share, carried out on a non pre-emptive basis and at a 6.6% discount to the firm's closing share price on December 5, 2017 of 1,001.00 pence.
The claimants are challenging both the rationale for the placing and how the shares were allocated, and are seeking GBP10.4 million in damages for alleged losses.
Tak Lee said it expects the trial to occur in 2021.
Chair Nicholls said in a statement that Shaftesbury's board rejects Tak Lee's statement on the mismanagement of company affairs, and recommends that shareholders vote to approve all resolutions at the upcoming meeting.
"The highest standards of corporate governance and behaviour are embedded in our culture and the day-to-day running of your company. We have an experienced board of executive and non-executive directors who are fully aware of their fiduciary duties. Across the business, the long-term promotion of the business for the benefit of all stakeholders, including shareholders, is paramount in decision-making," Nicholls stated.
Shares in Shaftesbury - which is headquartered in London - were down 0.6% at 918.85 pence on Tuesday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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