Serious loss of capital: non-issue?4 May 2025 02:36
As far as I can see, DKE held two AGMs in 2024 - 12/01 and 18/04. No other GMs.
The serious loss of capital issue was noted in DKE’s audited results (to 30/09/24), dated 24/01/25: - “The net assets of the Company closed at less than 50% of the issued share capital, in breach of s656 of the Companies Act 2006. The Company has made significant progress during the year in tidying its affairs, which has included eliminating debt, placing the Company's two active subsidiaries into liquidation and paying off various historic creditors. The Company is now in a much stronger position to pursue potential strategic opportunities and to correct the breach and will continue to keep its shareholders informed of its progress.”
Under the Act, Directors must: Convene a general meeting within 28 days of becoming aware of the situation. Ensure the meeting is held within 56 days of that awareness. The purpose is to consider remedial steps, though there is no legal obligation to take specific action following the meeting.
Per Friday’s RNS, “Although the Directors are addressing this matter as part of the General Meeting, Shareholders should note that this is not specifically related to the Company's current business and is not a new issue which has arisen since the publication of the annual financial statements for the year ended 30 September 2024.”
So, the issue was known before the current Director’s took over, but not addressed through a GM as legally required by the then Directors. The breadcrumbs are all there … housekeeping, tidy up DKE governance c**k up before CapAI starts to fly.
Am I reading this situation correctly? If so, whilst messy, it seems to be a non-issue and we let Richard and team tidy house.
In hindsight, this realisation (probably) explains the Change of Company Secretary that was RNS’d on 15/04.
Please correct if I’ve misunderstood. DYOR GLA!
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