Spindex Industries

[wj1984]

I think the acceptance would be based on the top 20 shareholders vote. I don't think the MIs here have much say...

Hi wj1984,

I disagree with your comment above. This is because for SOA to be approved by shareholders, there are two parts which needs to be carried:

1. a majority in the number of shareholders present and voting at the meeting; and
2. such majority representing at least 75% in value of shares held by the shareholders present and voting at the meeting.

Yes, you are correct to say that top 20 shareholders vote might determine the outcome of 2., but certainly not 1. For 1. to be carried, it requires a majority of headcount at the SOA. Yes, your uncle might have a lot of shares in Spindex, but if he voted at the SOA, he is only considered as a headcount of one. Therefore, many MIs holding a small number of shares might be able to defeat 1. and therefore reject the SOA.

Wow I didn't know the SOA is based on number of shareholders instead of no. of shares (devil in the details) when the voting takes place once the requirement is met...

Thanks for this info gh! I would very much like to vote against it since i think a fair value would be 1.2x NAV at least...