Albion Ven Cap Trust Gm Statement - Update
06 Febbraio 2020 - 10:33AM
UK Regulatory
TIDMAAVC
Albion Venture Capital Trust PLC
LEI Code 213800JKELS32V2OK421
Update on 21 August 2019 General Meeting Voting Results
At the General Meeting (the "Meeting") held on 21 August 2019, an
ordinary resolution was proposed to approve changes to the Company's
Management Agreement, as detailed in the circular sent to shareholders
on 1 July 2019.
Whilst the majority of shareholders supported the changes, with 70.4% of
the votes cast in favour of the resolution, the Board noted that more
than 20% of the shareholder votes were against the resolution.
Following the Meeting, in accordance with the UK Corporate Governance
Code, the Board has carried out a consultation process with shareholders
whose shareholdings represented a majority of votes that voted against
the resolution to more fully understand the reasons for their
opposition.
Of the total number of shares that voted against the resolution,
shareholders representing 59% were contacted directly by the Chairman.
Responses were received from a number of shareholders and the Board has
taken time to carefully reflect on this feedback.
There was no clear unanimous reason for the opposition to the proposed
changes from this feedback, however some of the views expressed were as
follows:
-- The performance incentive fee increase from 8% to 20% of the excess
profits above the hurdle, was felt by some to be too high;
-- Performance incentive schemes are inappropriate for VCTs as a whole;
-- The hurdle of RPI + 2% in the current environment felt too low; and
-- The details contained in the Circular sent to shareholders on 1 July 2019
could have been better explained.
In light of this feedback, the Board revisited its original benchmarking
and carried out further analysis on the management performance incentive
arrangements across the VCT industry. The results of this analysis
further reinforced the Board's views that the new performance incentive
scheme was a fair and effective scheme, with a challenging hurdle, that
would help to ensure the delivery of good shareholder returns.
Specifically, it was noted that an excess share of 20% is the industry
norm and not excessive in the current market.
Nevertheless, taking into account the views expressed by some
shareholders at the AGM and in our subsequent consultation, the Board
has re-negotiated with the Manager to reduce the hurdle from 20% to 15%
which will be deemed to have taken effect from 1 April 2019. All other
terms, as detailed out in the circular sent to shareholders on 1 July
2019, will remain the same.
The Board would like to thank those shareholders who provided feedback
on this matter and would like to emphasise that the Board is committed
to act in the best interests of shareholders, in line with the UK
Corporate Governance Code.
6 February 2020
For further information please contact:
Albion Capital Group LLP
Company Secretary
Tel: 020 7601 1850
(END) Dow Jones Newswires
February 06, 2020 04:33 ET (09:33 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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