Reabold Resources PLC (AIM:RBD) has confirmed that it will hold an extraordinary general meeting, requisitioned via Pershing Nominees, despite claiming there were “several deficiencies” in the necessary documentation.
The company said that it had been advised that “the requisition letter contained several deficiencies, including the potential for resolutions to be voted on in such a combination that the company could be left without a minimum of two directors to form a valid quorum in breach of the Companies Act and that resolution 11 should properly be classified as a special resolution and not an ordinary resolution.”
Nevertheless, Reabold’s management told investors that notwithstanding its concerns about the validity of the letter it has decided to proceed with the meeting as “the requisition process is a major distraction and needs to be dealt with swiftly.”
The requisition from shareholders represented by Pershing Nominees, owning some 6.93% of Reabold, seek a vote to remove the executive team and appoint new directors - Kamran Sattar, Cathal Friel, Francesca Yardley, and John McGoldrick.
Reabold said it “believes that the requisitioning parties have a questionable motive to gain control of the company without paying a control premium.
“The board also notes that the proposed new directors include individuals with a track record of value destruction as public company board directors or no public board experience at all," it added in a statement.
The company said it will publish a meeting date “shortly” and advised that shareholders should not take any action at this stage.