(Alliance News) - Smiths News PLC on Wednesday noted a handful of motions faced sizeable shareholder opposition at its annual general, with a special resolution, which needed a more resounding majority, failing to pass.
The Swindon-based newspaper and magazine distributor said just under 30% of shareholders rejected a motion to approve the directors' remuneration report and 20% voted against a proposal on the authority to allot shares.
Smiths also noted that a vote on the authority to disapply pre-emption rights in relation to an acquisition or specified capital investment failed to pass, with just over 25% rejecting the proposal. Smiths explained that since it was a special motion, it needed the approval of 75% of shareholders.
Smiths added: "The board acknowledges that this is the second consecutive year in which this particular resolution has failed to carry and, despite good levels of engagement with shareholders over the past 12 months to better understand the reasons behind their previous voting instructions, the board remains disappointed in this outcome.
"In light of these voting outcomes, the board remains committed to continuing an open and transparent dialogue with the company's shareholders and will, accordingly, seek to continue to engage with those shareholders regarding their views and/or any specific concerns in these areas."
Smiths also explained that a shareholder withheld votes on three motions, one related to the authority to make political donations, two were in relation to pre-emption rights and another on the authority for the company to call general, besides AGMs, on 14 days of notice.
Smiths shares closed down 6.1% at 26.00 pence each in London on Wednesday.
By Eric Cunha; ericcunha@alliancenews.com
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Smiths News (SNWS)