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Proposal to Restructure Templeton Emerging Markets Defeated.
(30/7/2007). At the EGM of Templeton Emerging Markets Investment Trust on
the 27th July, the resolution to enable market share buy backs to reduce the
discount at which the trust trades was passed, but the proposals to
restructure the trust were defeated as the required 75% majority was not
achieved. More information is available in the members-only section of the
UKSA web site at:
Temit.
Private Investor Holdings Continue to Decline. (23/07/2007). The
proportion of the UK stock market held by private investors declined yet
again to 13% in the last two years according to the recent survey by the
office of National Statistics, while foreign investor holdings rose to 40%.
For more details, read this article:
UK_Market_Statistics_2007.
Pacific Continental Securities goes into Administration. (06/07/2007).
Stockbroker Pacific Continental was barred from taking on new business by
the FSA, and soon after went into Administration. See
Pacific Continental for more
information.
AIC
Wins Case on VAT Liability on Expenses of Investment Trusts.
(29/06/2007). The Association of Investment Companies (AIC) has won a case
at the European Court of Justice, in conjunction with JPMorgan Claverhouse.
Their claim was that VAT on management expenses of investment companies
should not be charged, in the same way as it is not on unit trusts and OEICs.
This should save investment companies, and hence their shareholders, about
£40m per year.
New
UKSA Regional Chairmen Appointed. (29/06/2007). Stan Grierson has been
elected Chairman of the South-East Region of UKSA. Stan has been active in
the Euroshareholders Group and the South East Region of UKSA for some years.
Peter Raynes has also taken over as Chairman of the North-West Region.
UKSA
Comments on Torex Debacle. (20/06/2007). The following press release was
issued following the announcement by Torex that the assets had been sold for
£205 million, leaving nothing for ordinary shareholders, and the company
then placed into Administration:
Press043_Torex. A previous press release on
our requisition of an
Extraordinary General Meeting is at:
Press042_Torex
Dutch Shareholder Association Blocks ABN Amro Sale. (04/05/2007). The
Dutch Shareholders Association, VEB, won their court case yesterday to halt
the sale of LaSalle Bank without shareholders consent. VEB had objected to
this disposal as they believed it was a way to ensure that the ABN directors
preference to merge with Barclays was consummated rather than consider a
joint bid from Royal Bank of Scotland and others. See
www.veb.net/overveb/english.php
Eurotunnel Shareholders Protest About Withdrawal of Travel Perk.
(24/04/2007). Founder shareholders in Eurotunnel are to have their travel
privileges substantially reduced under proposals by the company as part of
the restructuring of the group. They are threatening legal action on the
basis that it is a breach of contract and a breach of the Takeover Code.
UKSA supports opposition to retrospective changes to the terms on which
shareholders subscribed. More information is present at:
www.grand-uk.com/eurotunnel.html
Shell
Announces Compensation to Shareholders for Reserve Errors.
(11/04/2007). Shell has announced a compensation settlement for European
investors who purchased shares in Royal Dutch Shell or Shell Transport &
Trading between 1999 and 2004 - a period when the company may have
overstated its reserves. See
Shell_Compensation_Settlement for more information.
UKSA
Announces Formation of Shareholder Group for Torex Shareholders.
(10/04/2007). The UK Shareholders' Association has formed a "shareholder
action group" to represent the interests of ordinary shareholders in Torex
Retail Plc. More information is in the following press release:
Press040_Torex
plus go to the following page: Torex.
FSA
Rethinks Listing Rules for Investment Companies. (05/04/2007).
Following a large number of protests about the proposed new Listing Rules
for investment companies, including objections from UKSA, the FSA has agreed
to reconsider the proposals. The opposition was led by the AIC - see
Press038_ListingRules for details.
Dividend Tax Credits and Their Impact on Pensions. (05/04/2007).
The impact of the removal of dividend tax credits from pension funds has
been much in the news lately following the revelation that Gordon Brown
received advice that it could damage company pension schemes. UKSA member
Lesley Reed has set up a petition on the Prime Minister's new electronic
petition web site calling for its reinstatement - see
http://petitions.pm.gov.uk:80/DividendTax/ .
InvestFest 2007 Conference Programme Announced.
(06/03/2007). UKSA has announced an outline programme for its national
conference in May 2007. More information and a booking
form are present in the following document: InvestFest_2007.
UKSA Opposes Changes to the Listing Rules for Investment Companies.
(12/02/2007). UKSA believes that the recent proposals from the FSA on
changes to the Listing Rules for investment companies might expose private
investors to unacceptable risks, and indeed might result in the same kind of
debacle as happened with "split capital" investment trusts. We fully support
the AIC's opposition to these proposals - more details are in the following
press release:
Press038_ListingRules.
ISA Reforms Postponed Until 2008. (11/02/2007). The proposed changes to
the ISA and PEP regimes will take place but have been postponed until April
2008 to allow the industry to adjust. See the following press release from
the Treasury for more details of the proposed changes:
http://www.hm-treasury.gov.uk:80/newsroom_and_speeches/press/2007/press_15_07.cfm
UKSA Comments on Templeton Emerging Markets Investment Trust (TEMIT).
(26/1/2007). TEMIT has been the subject of an attack by City of London
Investment Management (CLIM) for alleged poor investment performance and
unwillingness to tackle the discount to net asset value. But UKSA believes
the former is certainly unjustified. The following press release has been
issued: Press037_TEMIT and this note explains our views
in more detail:
Templeton_Emerging_Markets. The company called a meeting of
shareholders for the 7th February and a report on the meeting is present in
the following note (only available to members):
Company_Report_Templeton
NASDAQ Bid for the LSE - More Examination Required?
(12/01/2007). UKSA has questioned whether the Government should not examine
the NASDAQ bid for the London Stock Exchange (LSE). See the following press
release for more information: Press036_LSE.
Postscript: the NASDAQ bid subsequently lapsed after they failed to gain
support from any more than 0.4% of shareholders.
FSA Reports Leaks are Rampant.
(29/12/2006). The Financial Services Authority (FSA) has commented in their
latest "Market Watch" newsletter on the scale of "suspicion transactions"
and market abuse. See the following document for more information:
FSA_Reports_Leaks_are_Rampant
UKSA Welcomes Special Dividend at Rank Group instead of Share Buy-Backs.
(13/12/2006). Rank Group recently announced the disposal of the Hard Rock
business and the payment of a special dividend to shareholders. Share
buy-backs, which UKSA had criticised, have apparently ceased for the time
being. The following letter was sent to Rank shareholders:
Rank_Response_Letter3
Investors Criticise Rises in Fund Charges.
(4/12/2006). The FSA changed its rules recently on the disclosure of maximum
limits for fund charges - effectively enabling funds to simply vary the
charges at a few weeks notice. And according to Lipper Fitzrovia, who
monitor total expense ratios, the annual impact of fees on fund performance
has moved from a negative 1.42% in 2000 to 1.55% last year, i.e. charges are
rising. UKSA deplores this trend and UKSA Secretary Toby Keynes intends to
vote against a move to remove a limit on one of his holdings in a Smith &
Williamson fund.
Accounting Proposals Attack Shareholders Rights.
(24/10/2006). A joint proposal from the IASB and FASB threatens to weaken
reporting standards and undermine the interests of shareholders. See the
following press release for more information:
Press035_Accounting_and_Stewardship.
"Privatisation" and the Case of Planit Holdings.
(22/10/2006).
The following press release has been issued about the general problem of
takeover bids involving management and financed by private equity:
Press034_Privatisation and Planit. Postscript: although a number of
private shareholders voted against the deal, the takeover went through. See
Planit_EGM for a full
report (in members only section).
LSE Issues Consultation on AIM Rules.
(10/10/2006). The London Stock Exchange (LSE) has issued a consultation
document on changes to the AIM Listing Rules and the Rules for Nominated
Advisers (Nomads) - see
http://www.londonstockexchange.com/NR/rdonlyres/3E04EB09-8032-4B40-8C97-E6E4FE834DE9/0/AIMNotice24Final.pdf
for details. The intention is to improve information to investors and
strengthen the role of Nomads - for example at present it seems that 10% of
AIM companies do not even have a web site. UKSA welcomes these proposed
changes and our response to the consultation can be seen at:
Aim Rules Consultation
InvestFest 2007 Gathering Launched.
(16/9/2006). Following the success of the 2006 UKSA national conference in
Banbury, a similar event has been announced for 2007. Details and a booking
form are present in the following document:
InvestFest_2007.
Members should book as soon as possible to ensure a place.
Share Buy-Backs Hit Record.
(2/9/2006). Morgan Stanley predict that share buy-backs will hit £30bn in
the UK this year, up from £25bn in 2005. They were only around £7bn in 2003
and it is suggested that they have helped to offset the withdrawal of cash
from the stock market by pension funds and other institutional investors.
However, UKSA is sceptical of the benefit of share buy-backs to investors
(increased dividends may have supported the market just as well) and
believes that this shows that they are getting out of hand.
Company Law Reform Bill About to Introduce Bad Law.
(13/8/2006). The UK Shareholders Association has expressed grave concern
about the provisions in the Company Law Reform Bill (now the "Companies"
Bill) in respect of access to share registers. The lack of definition of
"proper purpose" will undermine shareholder democracy and will result in
years of legal uncertainty and a mish-mash of ad-hoc decisions. See the
following press release for more information:
Press033_Share_Register_Access
Nominee Shareholders Enfranchised - At Last!
(7/8/2006). Although the Lord's Amendment to ensure the enfranchisement of
nominee shareholders was removed from the Company Law Reform Bill after
various objections, the Government did introduce another Amendment which
will have the same practical effect - see the following article for the full
story: Nominee Enfranchisement.
Institutional Voting to be Disclosed in Future.
(3/8/2006). The Government has reinstated a clause in the new Company Law
Reform Bill that had previously been removed by the Lords that will require
institutions to disclose the way they vote at company meetings. This change
failed to be debated in the Commons committee because of lack of time.
UKSA's comments on this aspect of the Bill were that we supported disclosure
but suggested that it should only be necessary when an institution held more
than a certain percentage of shares.
UKSA
Criticises Some Aspects of the FSA Proposals on Listing Rules.
(14/7/2006). The Financial Services Authority (FSA) has recently issued a
consultation paper on the implications for the UK of the EU Transparency
Directive and it also proposed changes to the Listing Rules for quoted
companies. The UK Shareholders Association (UKSA) feels that some of the
proposed changes are based on a misunderstanding or the way investors
research new investments, and monitor their existing investments, and
therefore we are opposed to some aspects of the proposals. Particular issues
that we feel are of concern are the dropping of paper interim reports and
reducing the amount of information in Annual Reports. See the following
press release for more information:
Press032_FSA_Consultation.
 Shareholder Rights for Nominees Promised.
(07/07/2006). It seems that the Government is to propose an Amendment to the
Company Law Reform Bill which will ensure rights for shareholders in nominee
accounts. This will extend to more than just rights to information, as
originally proposed, but it will only cover listed companies (that will
at least mean shareholders in ISAs and PEPs will get full rights if they
pick the right broker).
Government Minister Margaret Hodge, who negotiated the final compromise,
hailed it as "good news for both small investors and quoted companies".
This follows a long campaign by UKSA and other parties, including success
with a Lord's Amendment which was vigorously opposed by some registrars and
company secretaries. UKSA members also took part in a public demonstration
outside Parliament yesterday to ensure recognition of this issue (photo
left). Go to this page for more background:
Share
Certificates, Nominees, Crest
Press Release on Rank Group Share Buy-Backs Issued.
(06/07/2006). With shareholders in the Rank Group facing a halving of their
dividends, the UK Shareholders’ Association (UKSA) questions whether the
company should continue with their market buy-back programme. UKSA believes
that share buy-backs are often contrary to the interests of shareholders,
and particularly to the interests of private shareholders who are our
members. The increasing popularity of market share purchases by companies is
resulting in cases where such buy-backs are taking place when it is not
prudent, or where it is diverting cash that could and should be paid out in
dividends to shareholders. For more information see:
Press031_Rank.
UKSA Publishes Results of Members Survey.
(29/06/2006). UKSA undertook a survey of its members in early 2006 and the
results are now available to members at the following page of this web site:
Survey_Reports
UKSA Provides New "Members Only" Section of Web Site.
(27/6/2006). As part of its efforts to provide new services to members, this
web site now contains a new section which is only accessible by UKSA
members. It contains special offers on free spreadsheets and investment
management software, plus reports of meetings with companies as submitted by
members. Further services will be added at a later date (any suggestions for
more would be welcomed).
Government Jumps into Action on Access to Share Registers.
(21/5/2006). The Government has responded to the threats to GlaxoSmithKline
shareholders by filing an amendment to the Company Law Reform Bill to
tighten up access to share registers. However UKSA believes the change has
not been thought through and the following letter was sent to the Secretary
of State: ProperPurpose2. UKSA believes
that "proper purpose" needs to be defined, and in our view improper purposes
are those likely to lead to intimidation or harassment of shareholders, or
those commercial activities that are unrelated to the activities of the
company concerned (such as sending promotional material on investment
opportunities or other "junk" mail). But we are keen to ensure continued
public access to share registers for legitimate purposes so as to maintain
and protect shareholder democracy.
A Tax On Prudent Families.
(17/5/2006). Many private investors, and their financial advisors, are
complaining about the provisions in the recent Finance Bill in respect of
the taxation of trusts. The following document has been prepared and is
supported by many of the professional bodies who act in this area:
IHT_Briefing. It explains the issues and what
they would like to see done before the changes are implemented.
UKSA News (InvestFest and AGM votes).
(16/5/2006). The UK Shareholders Association held its Annual Gathering in
Banbury over the weekend (InvestFest) and members all agreed that it was a
resounding success. There are already plans to run a similar event next
year. Some pictures taken at this event are shown on the following page: AGM_2006
(note that for members of UKSA only, minutes of the AGM are present at:
2006_UKSA_AGM_Minutes
). David Blundell stepped
down as Chairman after five years of conscientious service to UKSA, and Nick
Steiner has stepped into the role. See the Contacts
page for the current list of directors.
Enfranchising Nominee Shareholders and Harassment of Glaxo Shareholders.
(9/5/2006). Some GlaxoSmithKline shareholders on the share register have
been sent letters threatening to publish their name and addresses on the
internet unless Glaxo stops using Huntington Life Sciences to perform tests
on animals. Although UKSA deplores this attack on private shareholders, and
believes that the law may have been broken in more than one respect
(recipients are advised to contact the police), there is a solution. That is
to simply move into a "nominee" account which your stockbroker or the
company can advise on. That historically has meant the loss of shareholder
rights such as the ability to vote so UKSA has not been in favour of nominee
accounts in general, but another important news item today was the passing
of an amendment to the Company Law Reform Bill that would force companies to
offer enfranchisement to their nominee shareholders. UKSA has been pushing
for this change, along with a number of stockbrokers, and we have also asked
that companies can refuse to disclose a share register where it believes it
might result in attacks on shareholders. See the news item below for how to
support the aforementioned amendment when it goes into the Commons.
UKSA Supports Share Centre Petition on Nominee Shareholder Rights.
(24/04/2006). UKSA has been campaigning for the introduction of much
stricter rights for nominee shareholders in the new Company Law Reform Bill.
See
www.uksa.org.uk/Shareholder_Enfranchisement_Background.pdf for
supporting information. The Share Centre are creating a petition on this
matter which you can sign if you go to
www.share.co.uk. UKSA recommends members to
support this petition.
UKSA Launches a Campaign Against Share Buy-Backs.
(19/04/2006). The UK Shareholders Association believes that market share
buy-backs are often contrary to the interests of private shareholders. The
increasing popularity of market share purchases by companies is resulting in
cases where such buy-backs are taking place when it is not prudent, or where
it is diverting cash that could and should be paid out in dividends to
shareholders. A good example of this is software company Surfcontrol, where
very substantial buy-backs have been taking place, when the company has
never paid a dividend. For more details see the following press release
Press029_Share_BuyBacks
Consultation on Share "Dematerialisation" Launched.
(10/04/2006). ICSA has launched a consultation document on "Electronic Share
Trading" that is intended to replace the issue of paper share certificates
and the associated processing procedures. It is suggested that the new
system will reduce costs, expedite settlement, improve security and
generally enable the UK stock market to keep ahead of international trends.
UKSA was closely involved in the development of these proposals and
recommends that all private shareholders should study and comment on these
plans. The full consultation document can be downloaded from:
www.icsa.org.uk/demat/ or you
can complete the survey questions on-line if preferred.
Disappointing Compensation Announced for Split Cap Victims.
(29/03/2006). The body set up to compensate victims of the split capital
investment trust scandal, Fund Distribution Ltd (FDL), have announced the
initial payment level. For those eligible it will be 40% of losses incurred
as an initial payment, with possibly another 10% to come later. See the full
announcement at:
http://www.funddistribution.org/FDL/fdcopy.nsf/content/newspressreleases?opendocument#1
Financial Ombudsman Criticises Government Over Pension Promises.
(19/03/2006). The Parliamentary Ombudsman has criticised the Government for
misleading pensioners over final salary pension schemes, following several
cases where pensioners have lost their rights when companies wound up the
schemes. The Government also undermined such schemes by reducing the
"minimum funding requirement" twice, and taking £5bn a year from pension
schemes by abolishing tax credits. More proof that the Government is not to
be relied on when you are making provision for your own financial future.
Market
Abuse Rampant According to the FSA. (19/03/2006). According to a new
report issued by the Financial Services Authority (FSA), insider trading is
very common in FTSE-350 stocks. And the regulations brought in to stop them
seem to be having no effect, because if anything it's getting worse. The FSA
detected abnormal price movements before 29% of bid announcements and before
22% of trading statements in the last few years. In addition, the position
seemed to deteriorate in the last year when there were a few "enforcement"
cases but the fines imposed were trivial (in the range £1,000 to £18,000).
Go to:
www.fsa.gov.uk/pages/Library/Communication/PR/2006/020.shtml for full
details
UKSA
Commences Campaign on Home Entertainment. (16/03/2006). The share price
of Home Entertainment has fallen from 240p in December 2003 to less than 55p
in recent weeks, and the market capitalisation is now less than £11 million,
even though revenue last year was £140 million. Clearly the company seems to
be in some difficulties so the question is whether sufficient changes are
being made to recover from this situation. UKSA has written to all
shareholders raising its concerns. See
Home_Entertainment for more information.
UKSA
Appoints New Newsletter Editor. (10/3/2006). The Private Investor has a
new editor, John Nairn. John is a semi-retired chartered accountant who
qualified with a large firm where he was mostly involved with auditing. He
then spent two years with a computer company, five years in the oil industry
and was chief accountant and company secretary of a fund management company
for two years. He can be contacted on:
J.Nairn 01305
784891.
UKSA
Sends Letter to all Setstone Shareholders. (24/02/2006). Setstone became
a shell after exiting from its unsuccessful "dotcom" business. It was later delisted from AIM. It
sought a business partner for a reverse takeover but despite loaning over
£1.6 million to two such businesses no such agreement was concluded and the
loans remain outstanding. Following disclosure of these events at an AGM in
December 2005, UKSA has sent a letter to all Setstone shareholders. Go to
Setstone for more details.
UKSA
Members Question Hilton Group Deal. (23/02/2006). At an EGM on the 27th
January called to approve
the disposal of the hotels business, the directors of Hilton Group faced a
number of challenging questions from shareholders. UKSA director Alan
Perryman also expressed concerns about the possible tax liabilities faced by
investors when the resulting cash is returned to shareholders. For the full
story see: Hilton_Group_EGM.
Subsequently the company confirmed its decision to return cash to
shareholders via a special dividend after which UKSA issued the following
press release: Press026_Hilton.
Singer
& Friedlander AIM VCTs Vote to Merge. (03/02/2006). At meetings held today, shareholders
in the three Singer & Friedlander AIM VCTs overwhelmingly voted to merge the
companies. UKSA advocated this move to the boards of these companies, and we see this as a successful outcome to the campaign
for changes to these historically poorly performing Venture Capital Trusts. Go
to S&F AIM VCTs for the full story of the
campaign.
UKSA
Launches Membership Survey. (01/02/2006). UKSA is issuing a survey form
to all members so as to enable us to get more feedback on the needs of our
members. A copy of the form is present in the following file:
Member_Survey_Form. An analysis of
the results will be published in a future edition of "The Private Investor".
UKSA Submits Consultation Comments on REITs.
(22/01/2006). The following document has been submitted by UKSA to the
Government's consultation on REITS (real estate investment trusts):
REITS_Consultation.
Press Release Issued on Shareholder Rights and the Recent Company Law Reform
Bill Debate.
(14/01/2006). UKSA issued the following press release on the recent second
reading debate of the Company Law Reform Bill:
UKSA_Press025_Company_Law_Reform.
UKSA Welcomes Merger of the Singer & Friedlander AIM VCTs.
(14/01/2006). The following letter has been sent to shareholders after the
details of the merger of the three S&F AIM VCTs were published:
Merger_Letter.
Government Criticised for Ignoring Private Shareholders in QinetiQ IPO.
(13/01/2006). There has been extensive criticism in the national press about
the floatation of QinetiQ, the former Ministry of Defence research
establishment. Half of the Governments holding will be placed with
institutions, but there will be no opportunity for private investors to
subscribe. Our Chairman, David Blundell, has said "It is patronising and
arrogant. My guess is they have done it for convenience".
European Commission Publishes Draft Directive on Shareholder Rights.
(09/01/2006). A proposed Directive on shareholder rights in Europe has been
published at:
http://europa.eu.int/comm/internal_market/company/shareholders/index_en.htm
. It provides some improvements to shareholder rights, particularly for
investors in other European countries but will not apparently have a
significant impact for UK companies and investors (the prospective UK
Company Law Reform Bill will meet the few areas where the UK is not already
compliant).
Report
on Setstone AGM. (23/12/2005). Setstone became a shell after exiting
from its unsuccessful "dotcom" business. It was later delisted from AIM. It
sought a business partner for a reverse takeover but despite loaning over
£1.6 million to two such businesses no such agreement was concluded and the
loans remain outstanding. Go to Setstone
for more information and a report on the recent AGM.
Murray
VCTs Vote to Merge. (12/12/2005). At meetings held today, shareholders
in Murray VCT, Murray VCT2 and Murray VCT3 overwhelmingly voted to merge the
companies. UKSA advocated this move to the boards of these companies at the
start of the year, and we see this as a successful outcome to the campaign
for changes to these historically underperforming Venture Capital Trusts. Go
to Murray VCTs for the full story of the
campaign.
UKSA
Criticises the Company Law Reform Bill as regards Shareholder
Enfranchisement. (15/11/2005). UKSA has issued the following press
release on the inadequacies of the provisions in the Company Law Reform Bill
as regards the rights of shareholders in nominee accounts:
UKSA_Press024_Company_Law_Reform. More background information
is at:
Shareholder_Enfranchisement_Background and a copy of a letter we sent to
our members is present at
Shareholder_Enfranchisement_Member_Letter.
Company
Law Reform Bill Launched. (10/11/2005). An Act of Parliament to reform
Company Law has been introduced into the House of Lords. See
http://www.publications.parliament.uk/pa/ld200506/ldbills/034/2006034.htm
for the details. UKSA has previously submitted comments on the White Paper
and some draft parts of the bill which can be seen below.
Royal Dutch Shareholders Form Group to Complain About Capital Gains Tax
Liability.
(26/10/2005) In May 2005, UK shareholders in Royal Dutch Shell were
presented with a large capital gains tax liability as a result of the merger
of Royal Dutch Shell and Shell Transport & Trading to form a new single,
holding company. Go to Shell for more information on
a group formed to complain about this.
UKSA Supports AITC Representation on Taxation of Investment Trusts.
(20/10/2005).
Investment Trusts, unlike Unit Trusts and OEICs, pay tax on any investments
in bonds. As a result, the investor in Investment Trusts might pay double
taxation. The Association of Investment Trusts (AITC) is calling for a
change in their tax position which UKSA has supported with the following
letter to the Treasury: AITC_Support
Dutch Investors Launch Action Against Ahold. (18/10/2005). The Dutch
Investors Association has commenced possible legal action against the
management of Ahold, and has called for support from international
investors. For more information read: Ahold
Railtrack Action Group Lose Lawsuit. (14/10/2005). The legal action by
the Railtrack Private Shareholders Action Group (RPSAG) against the
Government and former Transport Secretary Stephen Byers for "misfeasance"
was rejected by the High Court today. For more information see:
www.rpsag.org.uk
UKSA
Renames Newsletter. (14/10/2005). The regular newsletter produced
by UKSA, previously called "Update", has been renamed "The Private
Investor". This will clarify its purpose and target audience.
A Good
Week for Shareholder Democracy after a Three Cornered Fight at Murray VCT2.
(5/9/2005). Following the defeat of the resolutions to eject all the current
directors proposed by Charles Clark, UKSA issued the following press release:
Press023_Murray_VCT2. A full
report on the Murray VCT EGMs and the Singer & Friedlander AIM 2 VCT AGM is
accessible from the Companies page.
Share
Option Valuation. (17/8/2005).
An edited version of the following letter
was published in the Financial Times in August 2005, following comments from
the QCA on the difficulty in valuing share options in smaller companies and
the demand for a better methodology:
Share_Option_Cost_Estimation.
UKSA
Fights Proxy Voting Battles at the Murray VCTs and Singer & Friedlander AIM
2 VCT.
(11/8/2005). The following press release has been issued that covers the
forthcoming proxy voting battles in early September:
Press022_Murray_VCT.
UKSA
Suggests European Commission Gets it Right on Shareholder Rights.
(17/7/2005). UKSA has responded to the European Commission consultation on
shareholder rights with strong support, while criticising the DTI in the UK
for much weaker principles in the Company Law Reform White Paper. See the
following press release summarising our case at:
Press021_EU_Shareholders_Rights and the full UKSA response to the
consultation at:
EU_Shareholders_Rights. A further defect in the UK proposals was
highlighted in the following note to the DTI:
Shareholder_Rights_&_Information_Enfranchisement.
UKSA
Visits Peacocks, and Meets with Pittards & Surface Transforms. (22/6/2005). A brief report on the recent visit by
UKSA members to Peacock Group Plc (part of its programme of "analyst-style"
visits) is given in the following document: Peacocks.
And a description of a meeting of members with Pittards and Surface
Transforms is given in:
Pittards_&_Surface_Transforms.
UKSA Campaign on the Quester VCTs Bears Fruit and UKSA Asks for Proxy Votes
for S&F AIM VCT3 AGM. (13/6/2005). The merger of the three Quester VCTs
was approved by shareholders today after a long campaign by UKSA to promote
changes at these VCTs. UKSA also issued a letter asking for proxy votes for
the forthcoming AGM of Singer & Friedlander AIM 3 VCT Plc. See pages
Quester_VCTs and
S&F for more details.
UKSA Submits Comments on the Company Law White Paper. (27/5/2005). The
following is a press release that was issued on the proposed reform of
company law:
Press020_Company_Law_Reform, and our full comments
to the Government can be seen at:
Company_Law_Review_2005.
UKSA
Launches Campaign on Singer & Friedlander AIM VCTs. (17/4/2005). The S &
F AIM venture capital trusts have been selected as the
third target of
the UKSA campaign to improve the performance and corporate governance of
Venture Capital Trusts on the grounds of
poor investment performance, poor shareholder communication and high
costs. See Singer &
Friedlander AIM VCTs for more
information.
UKSA Expresses Concerns About Director's Remuneration at Foresight
Technology VCT. (16/4/2005). After very substantial increases in the
past year, the remuneration of directors at Foresight VCT is now similar to
that of much larger investment trusts, and breaches the UKSA guidelines by a
wide margin. See the following note which was sent to shareholders:
Foresight_Salaries.
Government Publishes White Paper on Company Law Reform. (17/3/2005).
The Government have published a White Paper on a Bill to reform Company Law.
The intention is to modernise the law and bring it more into line with
current business practice. See
http://www.dti.gov.uk/cld/WhitePaper.htm for the full report. UKSA will
be publishing comments on this in due course.
UKSA
Launches Campaign to Improve Matters at Ferraris Group. (16/3/2005).
With the share price declining for three years, and several profit warnings
being issued, UKSA has commenced a campaign to improve the performance of
this company. Go to Ferraris_Campaign
for more details.
UKSA
Launches Campaign on Murray VCTs. (17/2/2005). The Murray venture
capital trusts (Murray VCT Plc, VCT2 Plc, VCT3 Plc and VCT4 Plc) have been selected as the
second target of
the UKSA campaign to improve the performance and corporate governance of
Venture Capital Trusts on the grounds of
very poor investment performance, poor information disclosure and high
costs. See Murray VCTs for more
information.
Myners
Report on Pre-Emption Rights Published. (10/2/2005). The protection of
shareholders rights when new capital is raised has been reviewed in a study
by Paul Myners. See
http://www.dti.gov.uk/cld/report_pdfs/02-08-final-report.pdf for the
full report.
UKSA
Supports Scrapping of Paper Share Certificates but Opposes other Proposals
from the ESF. (7/2/2005). The European Securities Forum has proposed
dematerialisation of share certificates and enfranchisement of nominee
accounts. UKSA generally supports these proposals but we oppose many of the
details. See our
comments in full in an open letter to Minister Jacqui Smith at:
Dematerialisation_&_Nominees_Letter_Jacqui_Smith which is also
summarised in the following press release:
UKSA_Press019_Dematerialisation. Our explanation to our members on share
certificates is present in:
Scrapping_Share_Certificates.
The FT
Publishes Letter from David Blundell on Nominees. (1/2/2005). The
following letter from UKSA Chairman, David Blundell, was published in the
Financial Times on the subject of nominee accounts and shareholders rights:
Blundell_Letter.
Quester
VCTs Announce Merger Discussions. (31/1/2005). The Quester VCT 1, 2 and
3 companies have announced merger discussions. UKSA welcomes this initiative
following its previous calls for changes to be made to reduce costs and
improve the performance of these companies (see
Quester_VCTs)
UKSA
Visits Smith & Nephew. (24/1/2005). A brief report on the recent visit by
UKSA members to Smith & Nephew Plc (part of its programme of "analyst-style"
visits) is given in the following document:
Smith_&_Nephew
Donald Butcher has Letter Published in The Times. (20/1/2005). The
following letter from co-founder of UKSA, Donald Butcher, was recently
published in the The Times newspaper. It covers how UKSA can help private
shareholders (a PDF file):
Butcher_Letter.
UKSA Appoints AGSAG as an Affiliated Action Group. (15/1/2005). The
Argonaut Games Plc Shareholders Action Group (AGSAG) has been offered
support by UKSA and has been granted "Affiliated" status. Argonaut Games Plc
appointed administrators to three trading subsidiaries on the 22nd October
2004 and a week later two of them were sold to newly formed companies of
which the former chief executive of Argonaut Games is a director.
Shareholders question whether the subsidiaries were sold at a fair price,
and why the company seemed to decline so rapidly. For more information see
the following Press Release which was issued by UKSA:
Argonaut_Press_Release
Takeover Panel To Change Rules on Derivatives Holdings. (9/1/2005).
Derivatives such as CFDs have become a major factor in recent takeover bids,
with long term holders often selling out early and leaving most of the
shares controlled by hedge funds and banks (including the voting rights in
many cases). However they are not currently covered by disclosure rules, or
the requirement to bid if one controls more than 30% of a company. For
example see the discussion of DFS Furniture on the "Companies"
page of this web site. The Takeover Panel is proposing to change its rules
so that derivatives holdings would be treated the same as ordinary
shareholdings.
UKSA
Visits VT Group. (29/12/2004). A brief report on the recent visit by
UKSA members to VT Group Plc (part of its programme of "analyst-style"
visits) is given in the following document:
VT_Group
FSA Announces £194m Compensation for Split Victims.
(24/12/2004). The Financial Services Authority have announced compensation
of £194 million for victims of misselling of split capital investment
trusts. However some 20,000 people lost about £600m and the final figure is
much less than the FSA was originally hoping to put together. The amount
offered is being contributed by a wide range of fund managers, banks and
stockbrokers who were involved in devising, promoting or selling these
trusts, which were complex, high risk products that were sold as low risk
(and often to relatively unsophisticated investors). High gearing and cross
holdings between trusts caused them to fail or depreciate rapidly when the
stock market fell. The message for private shareholders: don't buy something
you don't completely understand. If you may be eligible for compensation go
to: www.funddistribution.org
for more information. Note also that solicitors Leon Kaye are also
representing investors in split capital trusts (see
www.leonkaye.co.uk/class.htm
).
Government to Permit Auditors to Limit Liability.
(15/12/2004). The Government has agreed in principle to enact legislation to
limit auditors liabilities. At present they have unlimited liability in the
UK and often end up as the main targets when shareholders become disgruntled. It
is likely they will be able to do this by contractually agreeing an upper
limit with the company, and also the principle of "proportionality" will be
introduced (ie. they will only be liable for the proportion of any
"misdeeds" that can reasonably be assigned to them). However
"reckless" auditors who make false statements may face jail and auditors
will be open to questions from shareholders. Extensive consultation
is planned and the legislation may be complex.
Evolution Fined £500,000 for Room Service Market Abuse. (15/11/2004).
Following short selling of Room Service shares in 2003, Evolution Securities
has been fined for "market abuse". More than 2.5 times the total number of
shares in issue were sold and buyers were unable to obtain delivery. See the Companies section for more information.
Shareholder Opposition Votes Increasing. (03/11/2004). According to a
report by PIRC (Pensions & Investment Research Consultants), who offer proxy
voting services, shareholders are increasingly voting against company
proposals. The number of occasions when votes against motions at company
meetings exceeded 20% rose last year from 7% to 9.1%. The number of
abstentions also increased.
UKSA
Visits International Power. (22/10/2004). A brief report on the recent visit by UKSA members to
International Power Plc (part of it's programme of "analyst-style" visits) is given in
the following document:
International_Power.
UKSA Opposes Adoption of "Poison Pill" by Foresight Technology VCT.
(19/10/2004). Foresight Technology Venture Capital Trust is proposing to
adopt new Articles that will deter, and in some situations, disenfranchise
shareholders who acquire their shares in the open market. See
Foresight_Technology for more
information.
UKSA Adopts Policies to Promote Company Action Groups. (15/10/2004). The UK
Shareholders Association has adopted a new policy to help in the formation
of UKSA sponsored company "action groups" or to offer affiliation to
existing groups. See Shareholder Groups
for more information.
Fortress Holdings Commits to Voluntary Wind-Up. (12/10/2004). The Fortress
Shareholders Action Group (see
www.newfortress.co.uk) have achieved some success in that the company
has now agreed to proceed with a voluntary liquidation. See
Fortress_Press_Release for
more information.
Fostering An Appropriate Regime for Shareholders Rights. (15/9/2004). That's the
title of a consultation document issued by the European Commission. See
Shareholder_Rights_Consultation for the text and how to respond.
British
Energy Campaign Promoted by UKSA. (10/9/2004). Existing British Energy
shareholders are likely to be left with a minimal proportion of the company
if proposals by the board go ahead. On the 3rd September 2004, Polygon
Investment Partners LLP and Brandes Investment Partners LLC, two major
shareholders, gave notice of their requisition of an Extraordinary General
Meeting. For more information go to the "Companies"
page.
UKSA
Expresses Concerns About Events at DFS Furniture. (6/9/2004). UKSA
members oppose the offer for DFS Furniture by chairman Lord Kirkham as it
appears poor value. UKSA also expresses concerns about the events
surrounding the offer, the independence of the directors and the comments of
Lord Kirkham. Go to the article on the Companies
Page for more information.
UKSA
Launches Campaign to Improve the Performance and Governance of Venture
Capital Trusts (VCTs). (14/08/2004). Unlike the situation in most quoted
companies, private shareholders are the predominant holders of shares in
Venture Capital Trusts. As the main voice of private shareholders in the UK,
UKSA has commenced a campaign to improve the underperforming trusts and to
ensure that shareholders can better understand what is happening to their
investment. See the following press release for more information:
UKSA_Press014_VCTs and the following
web page for an extensive report and set of "Guidelines" for how we believe
VCTs should be managed: VCTs.
UKSA
Suggests Alternatives to Dropping "Show of Hands" Voting. (6/8/2004).
The dropping of "show of hands" voting at AGMs is a contentious issue for
private shareholders. An article discussing this topic and some alternative
suggestions is given at
Voting at the AGM2.
UKSA Supports Tightening of Segmental Reporting in IFRS 14. (29/7/2004).
Good segmental reporting of sales and profits is essential to understanding
a business and UKSA would argue the current standard is too weak. We fully
support the tightening of the relevant accounting standard in the proposed
IFRS 14. See our comments to the IASB on this subject at:
Segmental_Reporting.
Complaints on Investments Rise 57%. (30/6/2004). Nearly 100,000 people
complained about investments to the Financial Ombudsman in the year ending
March 2004, a rise of 57% on the previous year. This is symptomatic of the
rising lack of public confidence in investment institutions following such
problems as endowment policies, split cap investment trusts and precipice
bonds.
Chief Executives Pay Rises 168% in 5 Years. (24/5/2004). According to a
report from consultancy Independent Remuneration Solutions (IRS), the pay of
the chief executives of the 800 largest quoted UK companies soared by 168%
in the last five years. The authors also criticised the lack of transparency
in many company annual reports where the increased benefit of share options,
LTIPs, pension awards and other complex remuneration is often not obvious.
For more information see:
http://www.independentremuneration.co.uk/SampleSurvey/surveydetails.pdf
Myners
Defends Dropping "Show of Hands" at AGMs. (22/4/2004). At a UKSA South
East Meeting, Paul Myners defended his recommendation that a poll always be
taken at AGMs. This might permit "show of hands" voting to be dropped,
although he also suggested that Chairman may still like to retain that (his
report to the Shareholder Voting Working Group was ambiguous in that
respect). However, on a "show of hands" at the UKSA Meeting, it was clear
that most members would prefer it to be retained. Otherwise Mr Myners
presentation on other corporate governance and investment issues was very
well received.
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