SHAREHOLDERS in listed property developer JSM Indochina voted Monday for a cleanout of the board in an extraordinary general meeting in London requested by minority shareholder Passport Capital LLC in October.
Around two-thirds of voting shareholders passed a resolution by the San Francisco-based hedge fund Passport to remove Executive Directors Craig Jones and Rowell Tan and Non-Executive Chairman Michael Tanner from the six-man board.
They also voted to replace them with Passport nominees Scott Verges, Paul Kaju and John Duggan and supported a resolution to accelerate the return of uninvested cash to shareholders after complaining that millions of dollars in capital tipped for Cambodia and Vietnam had sat idle.
The three new appointees still must be approved by the firm’s nominated adviser under the rules of the AIM board, the alternative investment market on the London Stock Exchange, where the company is listed.
However, Numis, the fund’s nominated adviser, also resigned Monday, so the approval will not take place until a replacement is appointed.
The firm’s shares were suspended at US$0.66 due to the resignation of the adviser. Under AIM rules, the new board has 30 days to find a replacement before the company is delisted.
The vote to replace Jones and Tan was symbolic, as the two resigned as executive directors on November 26, though they continued in their roles with JSM Capital Indochina Ltd, which has been contracted by the company to manage the fund’s investment portfolio.
Jones could not be reached for comment Tuesday.