Alliance Trust to battle with shareholders

first_img Alliance Trust to battle with shareholders whatsapp INVESTMENT manager Alliance Trust, the FTSE 100 firm run by chief executive Katherine Garrett-Cox, is embroiled in a pitched battle with its shareholders after Laxey Partners, which owns 1.3 per cent of the firm’s stock, set up a shareholder action group over the weekend.Laxey co-founder Colin Kingsnorth says that the group has been contacted by dozens of interested stock-holders representing 10-20 per cent of the firm’s shares regarding disputes over investor voting rights and the discounted value of Alliance’s stock. “People have written to them and sat down with them many times and they’ve done nothing,” said Kingsnorth. “They’ve pushed them aside.”He says that the firm’s stock currently trades at an 18 per cent discount to net asset value and is demanding that it adopt a discount control mechanism – whereby it would automatically buy back shares if the discount reached a certain level – to protect investors.Alliance Trust has implemented two strategic buybacks since October 2009 to a total value of £35.2m, but neither has been enough to satisfy its disgruntled stockholders. Kingsnorth blames the discount on the firm’s voting system, whereby members of the Alliance Trust Savings Scheme – which includes senior management and any Alliance Trust clients – vote as a bloc instead of on the basis of one vote per share. The scheme is Alliance’s biggest stockholder, owning 21 per cent of its shares. Laxey wrote to the board of Alliance outlining its grievances on 10 November, but it was not satisfied by the response it received.This is not the first time the voting rights issue has been raised by shareholders.In 2008, Troy Asset Management organised a collection of shareholders representing 10 per cent of Aliance stock to raise the issue non-publicly, but they were defeated by senior management.In order to call a vote on the discount or the company’s voting system at its annual general meeting in May, shareholders either representing five per cent of its stock or over 100 in number must support placing them on the agenda. But Kingsnorth says he has already met this requirement by dividing Laxey’s holdings into 100 separately registered companies.Alliance Trust refused to comment yesterday. Share Sunday 5 December 2010 11:02 pm whatsapp Tags: NULL KCS-content Show Comments ▼ More From Our Partners Russell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.comKiller drone ‘hunted down a human target’ without being told‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comWhy people are finding dryer sheets in their mailboxesnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comlast_img read more