LONDON - DCI Advisors Limited, an investment management firm, has announced the adjournment of its previously scheduled Extraordinary General Meeting (EGM) for December 12, 2024, and the issuance of a notice for a new EGM on December 19, 2024. This move comes after shareholder discussions and legal consultations regarding the company's proposed corporate restructuring.
The original EGM was convened to address three resolutions: the re-domiciling of the company from the British Virgin Islands (BVI) to Guernsey, the authorization for the company to repurchase its own ordinary shares, and the establishment of an Employee Share Ownership Plan (ESOP). However, shareholders expressed a desire to vote on the ESOP independently from the re-domiciling resolution.
The board has expressed particular concern that failure to re-domicile by the end of December could result in significant tax liabilities for DCI, which would materially reduce the company's net asset value and the distributions to shareholders. To address these concerns and shareholder feedback, the board has decided to detach the ESOP resolution from the re-domiciling resolution, allowing shareholders to vote on the latter on its own merits.
The board also stated that it intends to ensure the company's finances are stable before funding the ESOP, with plans to fund it only after at least €10 million has been received from asset sales and only from excess cash receipts over that figure.
The board continues to recommend approval of the resolutions, believing them to be in the best interests of the company. They have unanimously recommended that shareholders vote in favor of the resolutions at the upcoming EGM. The board members, holding 0.32% of the company's issued share capital, have stated their intention to vote in favor of the resolutions, though they are excluded from voting on matters related to the ESOP.
The new EGM will be held at 55 Athol Street, Douglas, Isle of Man, and the revised notice is included in the circular being sent to shareholders. This update is based on a press release statement from DCI Advisors Limited.
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