On 29 August, long suffering EDGE VCT shareholders had finally had enough. They voted down no less than 7 resolutions at the AGM, including voting out three longstanding Directors. Chairman Sir Robin Miller had 1.7 mio votes in favour and 3.1 mio against, Lord Flight had 1.7 mio votes in favour and 3.2 mio against, and David Glick (from the Manager) had 1.7 mio votes in favour and 3.2 mio votes against. This expression of shareholder dissatisfaction is unprecedented.
It was a decisive move by investors, leaving only one Director in place (the recently appointed Terry Back who was not up for re-election). Mr Back was then faced with the obligation to appoint another Director to be quorate. Rather surprisingly given the strength of feeling by shareholders, Sir Robin Miller was reappointed to the Board just 2 weeks after he had been sacked. And their first joint act? To reappoint the just-sacked Lord Flight that same day.
While it is true that some Boards don’t listen well to shareholders, this takes Board arrogance to a whole new level. The matter has been raised with both the LSE and the FCA.
Mark Lauber, Director, ShareSoc