Dissident shareholders accuse IL&P of trying to 'manipulate' EGM votes
Published 14/07/2011 | 05:00
A DISSIDENT shareholder group has accused Irish Life & Permanent (IL&P) of attempting to "manipulate" key votes at the company's upcoming extraordinary general meeting (EGM).
The comments came after IL&P agreed to hear four resolutions proposed by the shareholder group at next Wednesday's EGM -- but recommended all four be rejected.
The resolutions include calling for a review of options to recapitalise IL&P without selling the firm's life insurance arm and asking the authorities for IL&P's recapitalisation deadline to be pushed out from the end of July to the end of December.
The shareholders say the way the motions have been rolled into next week's EGM means investors' votes on the key resolutions could be transferred to IL&P's chairman automatically.
Corporate governance conventions allow shareholders to lodge their own votes on specific motions and give the company's chairman "discretion" over their votes on "other motions".
Since the notice of the new resolutions was only published last night, the dissident group says the IL&P chairman will be able to "hijack" the votes of shareholders who submitted their documents before they knew about the new motions.
In a statement, IL&P did not reference the comments but stressed that investors were advised to vote against the new motions "given the lack of alternative options available".
IL&P has to secure €4bn in capital by the end of July.