The Swiss fund house is disappointed that investor group NewGAMe wasn't prepared to present its proposals to shareholders.
Swiss investment company GAM is canceling its extraordinary general meeting (EGM) scheduled for August 18, in the fund company's reaction to the latest move by investor group NewGame.
NewGame called the extraordinary general meeting to decide on the removal of the existing board of directors. But last Thursday, the group, which also includes multi-family office Bruellan, withdrew all motions, effectively rendering the August 18 shareholders' meeting moot, as finews.com reported,
Provocative Use of Shareholder Rights
GAM's board of directors was disappointed that Rock Investment, part of investor group NewGAMe, was not prepared to put the proposals to a vote of GAM shareholders, according to a media release issued by the Zurich-based finance company on Monday. Rock's decision to withdraw the proposals was a provocative use of shareholder rights, it said.
GAM points out that industry-leading proxy advisors ISS, Glass Lewis, and PIRC recommended that shareholders vote against the investor group's proposals. It said it was convinced the investor group's proposals would've been defeated if Rock had not withdrawn.
