Idion has had to delay its annual general meeting (AGM) after noting that a defect in the notice of the meeting would have disenfranchised shareholders.
The matter could have had serious implications, especially given the recent hostile takeover bid by Canada`s DataMirror Corporation, which now owns more than a third of Idion.
The issue centres on a technical matter relating to applying new Strate rules to AGMs now that company shareholdings have been dematerialised. Strate is the central securities depository which governs the dematerialisation of South African equities.
The defect in Idion`s notice regarding the AGM could have disenfranchised shareholders due to the delivery of their proxy forms directly to the transfer secretary or their not being in possession of the required letter of representation from their central securities depository participant or broker.
Idion corporate communications director Corn'e Arnold says Idion became aware of the problem when attending the recent Strate conference, which was held after the notice was issued.
She says with physical scrip, shareholders could fill in their proxy forms and submit them directly to the transfer secretary. But with dematerialised shares shareholders now have to send them to their central security depository participants, who then forward them to the transfer secretary.
The second problem was that the shareholders also had to have letters of representation to be eligible to vote.
Arnold says Idion consulted the JSE, which advised it to adjourn the meeting in the interest of shareholders.
She says this will give Idion time to reissue a notice and allow the correct process to be followed.
Share
