Resolution 6 Page 13 of the Explanatory Memorandum Proxy Form that was sent out to all Shareholders does explain the reason and it's pretty obvious the progress they are making and should they continue to make they could be subject to a take over bid or hostile takeover by a large global organization if and when the technology reaches a stage they consider this advantageous. This resolution gives the shareholders more say should this happen if the bid is reasonable or unrealistic to acquire the company and it's technology and buy a controlling stake.
" The Directors consider that Shareholders should have the opportunity to vote on any proportional takeover bid for theCompany. Without the proportional takeover provisions being included in the Constitution, a proportional takeover bid forthe Company may enable control of the Company to be acquired without Shareholders having the opportunity to sell all oftheir Shares to the bidder. Shareholders may therefore be at risk of passing control to the bidder without payment of anadequate control premium for all their Shares whilst leaving themselves as part of a minority interest in the Company.The proportional takeover approval provisions lessen these risks because they allow Shareholders to decide whether aproportional takeover bid is acceptable and should be permitted to proceed.The benefit of the provision is that Shareholders are able to decide collectively whether the proportional offer is acceptablein principle and it may ensure that any partial offer is appropriately priced.
We have engaged in the debate before on how Archer can do what they are doing when Global organizations have billions and should be way ahead of us. Mohammad has even addressed this in previous videos also .. it's NOT about the money! ... it's about the people and the team you have! You can throw as much money into research and development as you want but it's the people with the right skills and talent that will make the discoveries and advance your project ... also I have it on good authority that the R&D teams at the larger corporations are not that much larger than Archers and many know each other.
It would be unwise to think there are no eyes on Archer watching their progress and larger global corporations as they have done countless times before conduct take over bids if and when they believe the technology or product is at a stage in development that will advantage them. So this resolution gives us a say rather than our hands being forced should it come to a take over bid. As a holder with a substantial holding this is very important to me.
I didn't make it to the General Meeting this year as I've done enough travel this year but would love to hear from any others who attended and are happy to share there thoughts on the meeting.
Cheers
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