Palace Capital shareholders push back against chair at AGM

Close to a quarter of votes cast at Palace Capital’s annual general meeting today were against the re-election of executive chair Steven Owen. Owen’s re-election received 20.2m votes in favour – or 77.1% of votes cast – and 6m against, or 22.9%. Some 1.5m votes were withheld. “While most of the resolutions were passed with significant majorities, the board notes that the resolution to re-elect Mr Steven Owen, executive chairman, received less than 80% support,” the company said in a stock market update following the meeting. It added: “The company extensively engaged with its major shareholders in the lead up to the AGM in relation to the focus on the maximising of cash returns to shareholders, the new short-term incentive plan and remuneration policy, which are aligned with this strategy. “The company will continue to engage with its shareholders and in accordance with the provisions of the UK Corporate Governance Code. The board intends to provide an update on this engagement within six months of the AGM.” Owen became non-executive chair of Palace Capital at the start of 2022, switching to executive chair a few months later when chief executive and founder Neil Sinclair stepped down. The company has since been focused on a disposal strategy that has seen stops and starts during prolonged market uncertainty. In a trading update published ahead of the meeting, the company said it had sold 11 investment properties since April for a combined £57.9m, 6.4% ahead of their 31 March book value. Owen said in the update: “The disposals in the current financial year to date, including the majority of the company’s industrial portfolio and one of the top five assets by value at Derby Square, Liverpool, are a significant step forward in further reducing debt and leverage and demonstrate continuing progress in our strategy of maximising cash returns to shareholders… “At an operational level, the company continues to make good progress with its asset management activities notwithstanding the difficult and uncertain conditions in financial and property markets. We remain focused on maximising returns to shareholders through active asset management and the orderly, selective, and timely disposal of properties.” To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews