Goes like this. Lack of controversy and publicity favours the requisitioners. In simple terms, ignoring who can and who cannot vote,
If 100% vote, requisitioners need 50.1%.
If 50 % vote, they need 25.1%.
If 20% vote, they need 10.1%
In that last case, the requisitioners win with proxies equivalent to ONLY 10.1% of total shares outstanding. Even if the 80% who did not vote had clear intentions of voting against all 5 resolutions.
Like Brexit and the US elections rolled into one. Low turnout and complacency can result in outcome that does not reflect the intentions of the true underlying majority.
Voting is not compulsory. Significant number of votes are not cast due to complacency, forgetfulness, being on vacation, unopened mail, lost the form, CTN only minor part of portfolio etc.
The less the total amount of voting, the less proxies the requisitioners need to win.
On the flip side, the requisitioners and their backers will vote every last share they control and advise on. Mates including brokers rewarded by trading commissions ( ironically from the CTN portfolio managed by CGA) will be working their desks recommending clients vote for the proposed directors. The clients where brokers have full authority and discretion over, we know how the brokers will vote.
Publicity and controversy sucks in shareholders who usually watch from the sidelines and don't vote. And requisitioners don't want that.
Like buying control without paying full price? If 80% of shares oustanding sit on the sidelines, requisitioners will control CTN with only 10.1% of shares outstanding.
Yoda hearing from brokers close to the action that the proxies are with the requisitioners. So CTN shareholders interested in remaining independent, and having a choice in hiring the best fund managers and service providers - you must vote, you must vote against all five resolutions. Your shareholding could be a tiny percentage of CTN, but it will count. Make it count!
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