This article is from the Australian Property Journal archive
360 Capital RE Limited has accused Denison Funds Management, Forum and Garnaut of employing farcical tactics at a unitholders' meeting last Friday.
In a letter to investors of the 360 Capital Industrial Fund, 360 Capital RE Limited managing director Tony Pitt said an orderly meeting was held yesterday to consider the Denison/Forum/Garnaut proposal, which has been adjourned until 4 October 2012.
“In stark contrast to the farcical tactics employed by the Denison/Forum/Garnaut camp in relation to Friday’s meeting, 360 Capital RE limited did not object to the adjournment.
“Over the weekend, 360 Capital advised Denison/Forum/Garnaut that it had no intention of trying to disrupt the members’ meeting today, including employing similar tactics to that employed by Denison/Forum/Garnaut on Friday.
“However, 360 Capital has put Denison/Forum/Garnaut on notice that it will do everything in its power to ensure that members have an appropriate opportunity to vote and that their vote is properly counted in accordance with all relevant legal requirements in connection with both meetings.
“From 360 Capital’s view what is important is that investors have their say in respect of the matters before them and are not disenfranchised by a small minority who are attempting to frustrate the meetings for their own personal benefit,” Pitt said.
Pitt said based on the proxies received by 360 Capital to date in respect of the Denison/Forum/Garnaut proposal, there is very little support among members.
According to Pitt, approximately 950 non associated members holding over 82 million units have lodged proxies against the Denison/Forum/Garnaut proposal and in favour of the 360 Capital proposal — or over 46% of the entire register has now lodged proxies against the Denison/Forum/Garnaut proposal.
“We expect that in the next few days over 50% of the register will have rejected the Denison/Forum/Garnaut proposal meaning it is impossible for their proposal to succeed. Even including Garnaut clients and associates who have lodged proxies, the Denison/Forum/Garnaut proposal only has the support of 20% of proxy votes lodged to date.
“Based on these numbers, it is clear that members have seen through the Denison/Forum/Garnaut proposal and are rejecting it. It is hoped that Denison/Forum/Garnaut will realise their proposal is doomed to fail and will withdraw their proposal and allow the fund to focus on the more important matter of enhancing returns for members,” Pitt said.
Last Friday, investors in the 360 Capital Industrial Fund met to vote on a proposed ASX-listing of the fund. However the meeting turned into a showdown between 360 Capital and Denison FM.
Following the meeting, Denison FM CEO Matthew Burrows accused 360 Capital of employing farcical tactics against its speakers.
“A motion that Willcocks (Chairman Peter Willcocks, partner of Lander & Rogers Lawyers) be replaced as chairman by Owen Lennie received overwhelmingly supported on a show of hands. However, Lennie was almost physically prevented from taking the chair by a partner from Clayton Utz Lawyers, a move which many found totally unacceptable.
“Lennie called for a vote on ASX-listing the fund. The motion was voted down by the members in attendance. However, 360 Capital and their representatives protested the validity of the vote, stating that the meeting had been adjourned.
“According to those in attendance, 360 Capital and Clayton Utz staff further hindered the meeting. Clayton Utz turned off the lights, switched off the microphone, directed the appointed share registry to leave and asked security to escort all members off the premises,” Burrows said.
Property Review
