Fidelity Japan Trust considers future after AGM vote

Published 21/05/2025, 14:48
Fidelity Japan Trust considers future after AGM vote

LONDON - Fidelity Japan Trust PLC (LSE:FJV) announced today that it is reviewing formal written proposals from several London-listed investment companies specializing in Japanese investments. This development follows the failure to pass a key resolution during its Annual General Meeting (AGM) on Wednesday.

During the AGM, shareholders voted against the ordinary resolution regarding the continuation of the Company. Prior to the meeting, the board had initiated a formal review process on April 17, anticipating the potential rejection of the resolution. Stifel Nicolaus Europe Limited was appointed to oversee the process and invite private proposals for the board’s consideration.

The proposals under review involve a scheme of reconstruction in accordance with section 110 of the Insolvency Act 1986. While the content of these proposals remains undisclosed, the board is currently assessing the options and will provide an update on the review’s progress in due course.

In addition to the continuation resolution, the AGM saw the passage of resolutions permitting the directors to allot a limited number of unissued ordinary shares or sell treasury shares for cash. Shareholders also authorized the issuance of shares without a pro-rata pre-offer to existing shareholders and renewed the company’s authority to buy back up to 14.99% of its own ordinary shares for cancellation or retention as treasury shares.

However, the board withdrew a special resolution that would have amended the Articles of Association to extend the deadline for proposing actions following a failed continuation resolution from three to six months. The withdrawal was due to a misalignment between the intentions of the shareholders and the proxy voting results. The board plans to convene a General Meeting in June to revisit this resolution.

The results of the AGM’s special business resolutions will be filed with Companies House and made available on the national storage mechanism, as well as on the company’s website.

This report is based on a press release statement by Fidelity Japan Trust PLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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