LONDON (Alliance News) - Nyota Minerals Ltd Friday said it will not hold an extraordinary general meeting for shareholders to vote on proposals to remove some board members until a valid application has been submitted by the disgruntled shareholders.
As of Friday, shareholders holding a total 19.1% stake in the company have filed a request to the company asking for an EGM to be held to seek the removal of Chief Executive Richard Chase and Executive Director Michael Langoulant.
Numerous shareholders have sent letters requesting the meeting, including its two largest shareholders, Fiske Nominees with a 6.3% stake and Andrew Neal with a 6.4% stake.
Further shareholders holding a combined 9% stake have also sent letters stating they intend to support the EGM and its proposals, meaning shareholders with a total stake of 28.1% are now calling for action.
However, on Friday, the company said the letters are not valid requests for an EGM, and said Fiske, as the leading activist, needs to provide further information on why it wants the EGM to be called, and what its plans for the company would be following any EGM.
Nyota said it has also attempted to discuss the ongoing matters with concerned shareholders, but said no agreement has been reached despite offering to make a "progressive change" to the board.
Importantly, Nyota has agreed to move CEO Chase from his role, making him a non-executive director, it said.
"The company will then as soon as practicable thereafter convene a general meeting of shareholders whereby all shareholders will be able to vote on the composition of the board," said Nyota.
"The board also invites shareholders to contact them to discuss potential candidates with a view to nominating suitable directors to be considered at a general meeting of shareholders," it added.
In addition, Nyota said the ongoing "activism" is harming the company and preventing it from making investments.
"The board is conscious that in a situation whereby minority shareholders are seeking board control, the interests of all shareholders need to be protected and all legal requirements properly satisfied," said the company.
"Further, the board notes that current shareholder activism is having an adverse impact on the board's ability to progress any meaningful discussions on new potential investment opportunities; as illustrated by the termination this week of detailed discussions with a third party in relation to a potential new business opportunity," it added.
Nyota shares were down 9.9% to 0.0811 pence per share on Friday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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