Shaftesbury’s largest shareholder reignites dispute ahead of AGM
Sammy Tak Lee, the largest shareholder in Shaftesbury, has renewed his criticisms of the board, saying he will vote down its right to raise cash by issuing new shares at its AGM next week.
In a letter to shareholders, the Hong Kong-based billionaire, who owns 26.3% of the company, criticised the firm’s decision to raise £265m through a share placing in 2017. He claimed Shaftesbury has “attempted to trivialise the complaint in its public comments by stressing that it is facing a damages claim of some £10m”.
Tak Lee, who commenced formal legal proceedings against Shaftesbury in June 2019, said he is seeking a declaration that the directors on the board “acted in breach of their directors’ duties by conducting the placing for improper purposes”.
Sammy Tak Lee, the largest shareholder in Shaftesbury, has renewed his criticisms of the board, saying he will vote down its right to raise cash by issuing new shares at its AGM next week.
In a letter to shareholders, the Hong Kong-based billionaire, who owns 26.3% of the company, criticised the firm’s decision to raise £265m through a share placing in 2017. He claimed Shaftesbury has “attempted to trivialise the complaint in its public comments by stressing that it is facing a damages claim of some £10m”.
Tak Lee, who commenced formal legal proceedings against Shaftesbury in June 2019, said he is seeking a declaration that the directors on the board “acted in breach of their directors’ duties by conducting the placing for improper purposes”.
Shaftesbury has rejected the suggestion in Tak Lee’s letter “alleging mismanagement of the company’s affairs”. Chairman Jonathan Nicholls said: “The board considers the claims have no merit and is defending the allegations robustly. Over the past two years, we have responded promptly and appropriately to numerous letters from Mr Lee’s lawyers. Disappointingly, despite our repeated requests, Mr Lee has not directly engaged with the board.”
As well as planning to vote against resolutions to grant the board the right to undertake further issues of shares, Tak Lee also plans to vote against approval of the directors’ remuneration report, the re-election as directors of the xhief executive officer, the finance director and the chairman, and the ability of Shaftesbury to call a general meeting on 14 clear days’ notice.
Tak Lee was writing as a director of, and on behalf of, PEL (UK), Orosi UK, and Orosi (UK) 2. He previously wrote to Shaftesbury shareholders in January 2018 and January 2019.
Shaftesbury’s AGM will be held on Friday 31 January.
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