(Alliance News) - Hurricane Energy PLC on Wednesday said two motions at its annual general meeting were rejected, with two other proposals also facing sizeable opposition.
The Surrey, England-based oil and gas company said a motion to receive its annual report and group financial statements were rejected by 74% of voters at its AGM. A motion to re-appoint Deloitte LLP as auditors was rejected by 78%.
In addition, the company said proposals to elect Chief Executive Officer Antony Maris and Chief Financial Officer Richard Chaffe each passed, although 38% of investors voted against each motion.
"The board notes the results of these resolutions and the significant vote against them. We have engaged with shareholders to understand their reasons for voting in this way and understand their concerns, in particular in connection with events connected with the company's proposed restructuring plan. The board will consider further changes to the board in order to comply with appropriate corporate governance standards in the near term," Hurricane said.
The chair and four non-executive directors of the company resigned earlier on Wednesday, after a court rejected the firm's restructuring plan.
Chair Steven McTiernan, and non-executive directors - John van der Welle, Sandy Shaw, Beverley Smith and David Jenkins - all resigned with immediate effect.
Shares in Hurricane ended 29% higher at 3.60 pence each in London on Wednesday.
Hurricane said Alan Wright and David Craik have now been appointed as non-executive directors, with Wright assuming the position of interim chair.
The company added that it would re-appoint Antony Maris and Richard Chaffe as directors if resolutions to re-elect them were to be rejected at its general meeting. The company said it would maintain Maris and Chaffe to ensure "its ability to safely and effectively operate as a listed business."
Hurricane noted that Crystal Amber Fund, which owns around 15% of the company's issued share capital, now has withdrawn its requisition notice, and the additional general meeting, scheduled for next Monday, has been cancelled.
The changes follow the rejection of Hurricane's restructuring plan by the High Court of Justice of England & Wales on Monday.
The board proposed the restructuring plan in April after diminished expectations of the Lancaster field led the company to conclude that it would be unable to repay holders of the company's USD230 million in convertible bonds due in July 2022.
Earlier this month, 92% of shareholders voted against a resolution to approve the plan, which would have resulted in massive dilution of their interests in the company, as the bondholders would own 95% of the company following the debt to equity conversion.
By Scarlett Butler; scarlettbutler@alliancenews.com; Updated by Eric Cunha; ericcunha@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
