Hays maintains shareholder allotment strategy despite dissent

Published 20/05/2025, 16:58
Hays maintains shareholder allotment strategy despite dissent

LONDON - Hays (LON:HAYS) PLC, the UK-based recruitment firm, today addressed the dissenting votes from its 2024 Annual General Meeting (AGM) regarding the allotment of shares and the disapplication of pre-emption rights. Despite over 20% of shareholders voting against the Board’s recommendations on resolutions 13, 16, and 17, the company announced it would not alter its current approach.

Following the AGM on 20 November 2024, where the resolutions were passed, the Chair of the Board engaged with major shareholders to understand their concerns. The discussions focused on the Board’s authority to allot shares and disapply pre-emption rights, which allows the company to act swiftly in response to market opportunities that may arise.

The Board believes that maintaining the flexibility to issue shares at short notice is in the best interest of the company and its shareholders. The majority of the voting shareholders at the AGM supported the Board’s recommendations, reinforcing the decision not to adjust the company’s strategy in these areas.

Hays has committed to ongoing reviews of these matters and encourages continued dialogue with its shareholders. The company’s stance suggests a confidence in its governance practices and a dedication to balancing shareholder interests with the need for corporate agility.

This stance on shareholder allotment and pre-emption rights is a common practice among companies seeking to retain the ability to raise capital quickly. The decision by Hays to uphold its strategy, despite a notable minority opposition, underscores the often complex relationship between a company’s management and its shareholders.

The information regarding Hays’ response to the AGM voting results is based on a press release statement issued by the company.

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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