Investor Event

Core VCT – another messy VCT

This blog gives you the latest topical news plus some informal comments on them from ShareSoc’s directors and other contributors. These are the personal comments of the authors and not necessarily the considered views of ShareSoc. The writers may hold shares in the companies mentioned. You can add your own comments on the blog posts, but note that ShareSoc reserves the right to remove or edit comments where they are inappropriate or defamatory.

It is some time since ShareSoc mentioned the Core VCTs in 2015, https://www.sharesoc.org/blog/company-news/governance-in-investment-trusts-alliance-trust-baronsmead-vct-3-and-the-core-vcts/ but due to the hard work behind the scenes by Nigel Sommerville, Tim Grattan, Robin Goodfellow and others, it looks like progress is about to happen.

Nigel has written up the latest developments with ShareProphets click here to read (it is free – outside their paywall) https://www.shareprophets.com/views/59458/core-vcts-a-vote-is-called-if-you-or-someone-you-know-held-these-then-please-read

The Times wrote about Core on 7 Dec https://www.thetimes.co.uk/article/investor-sues-over-cheap-asset-sales-n0wkxqk3f (behind a paywall).

Cliff Weight, ShareSoc, Director

DISCLOSURE: I have never owned shares in Core. I have a subscription to www.ShareProphets.com which I enjoy reading and listening to and provides a good source of interesting viewpoints.

3 Comments
  1. Cliff Weight says:

    I am pleased to give the Core Shareholder action group a plug on the ShareSoc social media pages and anywhere else that might help.

    The first letter to shareholders from the action group was posted yesterday ( 9 Dec) so it should be delivered through shareholders letter boxes this morning. Core Shareholder action group plan to do three mailshots altogether.

    The Action group web site is here:
    https://corevctsshareholderaction.com/

    It is designed to give shareholders the background to the court action and the forthcoming meeting/vote and it is there to assist them in the voting procedure, it will also enable us to build up an email database of shareholders

    Core Shareholder action group will wait a couple of days before they add the first letter to the web site.

    Further background….

    The claims which have been brought by the Joint Liquidators are based primarily on an allegation that the Companies’ investments were sold to New Core I and New Core II at an undervalue (i.e. significantly below market value) and are as follows:

    A claim against the Manager for breach of fiduciary duties and trust and contractual and tortious duties of care owed to the Companies.

    A claim against a number of partners of the Manager, namely, Walid Fakhry, Stephen Edwards, Rhonda Nicoll and David Steel, New Core l, New Core ll, and Peter Smaill, a director of each of the Companies:

    for dishonest assistance in the breaches of fiduciary and trust committed by the Manager and the former investment manager of the Companies, Core Capital LLP (which has since been dissolved);

    intentionally procuring the Manager’s and Core Capital LLP’s breaches of contractual duties owed to the Companies;

    unlawful means conspiracy in that it is to be inferred that they agreed or combined with each other and others associated with Mr Fakhry and Mr Edwards to use unlawful means with the intention of injuring the Companies, as a result of which the Companies have suffered loss; and

    receipt, knowingly or otherwise in a manner which touches on their conscience of assets in which the Companies have an equitable proprietary interest in their assets that were transferred into New Core I and New Core ll and theirtraceable proceeds.

    A claim against the Former Joint Liquidators of the Companies and, through them, one or more of Begbies Traynor (Central) LLP, BTG Advisory LLP (formerly known as BTG Financial Consulting LLP), and Begbies Traynor Group plc vicariously, for equitable compensation and damages for breach of their statutory duties and contractual and tortious duties of care.

    A claim against Peter Smaill for breach of his fiduciary and other duties as a director of the Companies.

  2. […] support of campaigns for change – see https://www.sharesoc.org/campaigns/edge-vct-campaign/ and https://www.sharesoc.org/blog/vcts/core-vct-another-messy-vct/  . Note: I have never held shares in either of those VCTs but they are typical examples of […]

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