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Activism
Briefs .....
Activist investors have scored a victory at
DSM, forcing the Dutch manufacturing company to
withdraw a proposed loyalty dividend scheme from the vote at its AGM. In
response to legal action by a group of DSM shareholders led by
Franklin Mutual, the Amsterdam court of appeals ruled that DSM could not put
the proposal to shareholders because it was in violation of the principle of
equality. DSM said the purpose of the proposed scheme was to reinforce the
company’s relationship with shareholders and ensure more direct communication,
an objective which Peter Elverding, DSM managing board chairman, said had
received indications of support from a number of investors. DSM said it is now
considering “other ways of achieving the program’s objective”.
Foundation shareholders in
Eurotunnel are threatening to bring a
class action lawsuit against the channel tunnel operator unless it restores the
travel perks they were granted when first investing in the company. These
investors are forming the Eurotunnel Foundation Shareholder
Action Group, and the travel rights in question were granted at Eurotunnel’s
1987 float and provide for a personal right to unlimited travel. Eurotunnel’s
restructuring plan intends to withdraw these rights, with the company stating
that it has had legal advice that regulatory authorities would not permit them
to continue. However, foundation shareholders said they believe they have a
legal right to these travel privileges, and legal action may be taken to restore
them.
The Institutional Shareholders Committee, which comprises
the Association of British Insurers, the
National Association of Pension Funds and
the Association of Investment Companies,
is to develop a comply- or -explain code relating to the disclosure of the
exercise of investor proxy votes. The government has taken a reserve power in
the Companies Act 2006 to mandate disclosure but has emphasised that it would
prefer progress to be made voluntarily by the investment community. Ed Balls,
economic secretary to the Treasury, announced, in a recent
speech at the London Business School,
that the ISC has agreed that, following consultation, a code will be developed
by the summer. Balls said the Treasury
would cooperate fully with the ISC’s work.
Claude Lamoureux, president and chief executive, and
Robert Bertram, executive vice president, investments, at the
Ontario Teachers’ pension
plan are to receive the
Ivey Business Leader
award later this year. This award honours individuals and organisations that
the judges consider have made a significant contribution to the advancement of
business in Canada and reflect the ideals of the
Richard Ivey School of Business. “Claude
Lamoureux and Robert Bertram have together done more than anyone else to advance
the cause of shareholder rights within corporate Canada and their influence is
felt beyond our borders well into the global community”, said Gilles Ouelette,
co-chair of the Ivey business leader award committee and president and chief
executive of the private client group, BMO
Financial Group.
April, 2007 |
