An issue is the control aspect. There are also shareholders in...

First 100 Last

Share
Profile

Follow
PaulG

332 Posts.

99

18/05/24

08:09

Post #: 73889681
Share

Originally posted by FFailings: ↑

You are probably confusing yourself with a scheme of arrangement vote which is basically a vote on a takeover which requires 75% of the votes cast on the resolution; and more than 50% in number of the target shareholders voting on the resolution.

a disposal of asset resolution like this one requires 50% of the votes cast on the resolution (noting that SRK and management hold 30%+ of shares).

a caution on trying to be smart and wanting to stop the sale in the vote without a backstop - you will end up with a company with endless dilution like agy, lke and now gln. Yes the sale price is crap, but the share price goes <20c if it gets voted down.

Your effects are better spent on
- trying to find a white knight at the corporate level who will launch a hostile takeover (and who will aim for 50% of the shares at first)
- trying to persuade the board to hand back cash or wind up the company after the sale and axion ipo is complete. To put a resolution at a meeting, you first of all need 100 shareholders or 5% of shares to sign off on it, and then it gets voted which requires 50% of the votes cast

SRK's 30% stake is still a problem but not insurmountable

Expand

An issue is the control aspect. There are also shareholders in SRK that will not agree with the approach and performance of management and board. Same with other companies that they control. There have been calls for the winding up of some of these companies and returning funds to shareholders rather than continuing to fund directors for no return.
I would like to hear the forward plans, use of funds and strategy for all of LEL, SRK, BEL, OEQ and QUE.
The last 3 are that small with minimal activity. All have BoD common to LEL and SRK.

Last edited by PaulG: 18/05/24

LEL Price at posting: 42.0¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

Reply