Wind-up proposals deliberately structured to avoid giving warrant holders a vote are being put forwa...
Wind-up proposals deliberately structured to avoid giving warrant holders a vote are being put forward by the board of the Aberdeen Emerging Countries trust.
The move follows an EGM on 26 April when warrant holders voted down a proposed wind-up of the trust that would have put assets into either the Aberdeen Cash or Emerging Markets unit trusts. The board was offering 8p for each warrant at a time when the market price stood at 15.75p.
By putting the same proposals forward again but without offering a rollover vehicle, the vote, which must take place before 20 May, does not require warrant holder approval.
Andrew McHattie, publisher of Warrants Alert, the newsletter from the McHattie Group, said: 'In other words, the directors are saying that now warrant holders have voted down their scheme, they will carry on with a similar scheme anyway.'
Ian Sayers, technical director at the AITC, said warrant holders are not afforded the same rights and protection as shareholders under company law.
The board of the £43m trust was forced to put forward wind-up proposals after its largest institutional shareholder, City of London, called for an immediate wind-up in August last year. City of London withdrew this requisition later the same month when the board said it would put forward its own wind-up proposals.
£300bn of liabilities
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