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Summary
- The fully integrated specialty pharmaceutical group, Allergy Therapeutics PLC declared the results of the Annual General Meeting on December 8
- The company announced that all the resolutions which were proposed in the meeting had duly passed except the resolution 10
- The resolution 10 did not pass because of 49 per cent of the shareholders had voted against it
The fully integrated specialty pharmaceutical group, Allergy Therapeutics PLC has said that all the resolutions which were proposed at its Annual General Meeting (AGM) on Tuesday were passed, barring one the resolution 10.
Resolution 10 talks about disapplying pre-emption provisions of Section 561 of the Companies Act 2006, which is about allocating equity securities. The resolution was held back because 49 per cent shareholders voted against it.
Resolutions one to nine were proposed as ordinary resolutions, whereas Resolution 10 was tabled as a special resolution. Even though resolution 9 had the same percentage of shareholders voting against it, it was passed. The voting was conducted at the AGM by a poll.
Results at a glance:
(Source: Company Release)
Pre-emption provisions of Section 561(1) are related to the existing rights of shareholders, which states that the company must not allot equity securities unless it has made an offer to each shareholder who holds ordinary shares in the company or the period under which any such offer may be accepted has lapsed.
Company’s take
While expressing its disappointment about the outcome, the company said that the board acknowledges the failure to pass Resolution 10. It said that the board is considering the flexibility afforded are in the best interests of the company and shareholders. It has also noted that the same resolution was supported by the shareholders at previous AGMs.
The board has said it is committed to have an open and transparent dialogue and keep trying to engage with the shareholders to look for a solution.
Stock performance
On December 8, at the market close, the shares of AGY were recorded at GBX 15.25. With a market cap of £97.58 million, the company has delivered a positive return of 48.78 on YTD basis.
