Unit-holders have knocked back an Australian Property Growth Fund management proposal to set up investor committees, which Cyre Trilogy Group directors Peter Arnold and Rodger Bacon said was a ploy to divert attention away from Cyre's bid to take over the four property trusts.
Last week the pair accused Australian Property Growth Fund of undertaking a "scare campaign" in an attempt to retain the remaining four trusts, following a move by unit-holders in six Austgrowth Trusts to switch to Cyre Trilogy in May 2011.
Australian Property Growth Fund held meetings for unit-holders in Austgrowth Trusts 21, 22, 23 and 24 to vote on setting up the committees, which the directors described as "a cynical waste of unit-holders time and money".
They said the proposal was a diversion attempt and not needed to set up consultative representational bodies.
Unit-holders rejected the proposal, maintaining their intention to go ahead with the planned 4 June meeting to remove the fund manager and responsible entity and join their Austgrowth counterparts under Cyre Trilogy management.
Cyre has also accused Australian Property Growth Fund of providing out-of-date registers, which it claims are a product of APFG mismanagement.
"ASIC was requested some time ago to intervene and to enforce the law, but it would seem that so far ASIC has also been unable to remove the [Australian Property Growth Fund] blockage," Arnold and Bacon said.
After the takeover of the six trusts last year, Cyre said it would be difficult to meet the 50 per cent voting threshold for the remaining trusts, as many unit-holders were inactive and did not participate, essentially forfeiting their vote to the other side.
