Dixon Advisory directors withdraw Premium board nominations
Dixon Advisory directors proposing to be nominated to the Premium Investors board have now withdrawn their consent. The decision follows the announcement of Premium’s capital management plan, which involves a share buy-back scheme and amendments to the listed investment company’s constitution.
Last month a small number of Dixon Advisory shareholders called for a meeting of Premium shareholders to consider amendments to the company’s constitution, as well as the replacement of the current Premium board with Dixon Advisory staff — a result that would allow the new board to wind up the company. The move followed a period during which Premium’s share price did not reflect the net tangible asset (NTA) value of the company’s shares, the discount at one stage growing to 42 per cent.
Dixon Advisory said in a statement that the capital management plan meets the main concerns they raised, and that the proposed plan is in the best interests of shareholders.
Dixon Advisor managing director of strategy Chris Brown said Premium’s proposed off-market and subsequent on-market share buy-backs “will provide significant liquidity to all shareholders at a value close to the underlying NTA value of their shares”.
Premium has put three proposed resolutions to its shareholders: an immediate off-market equal access buy-back of up to 65 per cent of issued capital at a discount of 1.75 to NTA; a subsequent on-market buy-back over the next year of up to 15 per cent issued capital; and amendments to the constitution that will facilitate periodic capital management assessments by shareholders.
The Dixon Advisory directors removing their consent to be nominated will discuss the matter with members in order to secure their agreement to withdraw the meeting request.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
