Scottish Mortgage (SMT) has reassured shareholders it will not move annual general meetings online unless in exceptional circumstances after a 24.1% vote against a change empowering the board to hold virtual AGMs.
Although over 260m shares followed SMT’s recommendation in voting for resolution 17 at the AGM on Thursday, nearly 82.5m were opposed to the proposed change in the articles of association, a high level of dissent that requires a formal response by the board.
“With regard to the new articles, the board reiterates that, although the new articles permit shareholder meetings to be held by wholly electronic means, it has no intention of holding a virtual-only meeting if it can reasonably be avoided and remains committed to future general meetings incorporating a physical meeting at which shareholders can meet the board face to face,” the £16.3bn global equities trust said.
The board, chaired by Christopher Samuel, will contact the shareholders and provide an update on their views within six months along with any actions. All the other resolutions relating to the election of directors, approval of the report and accounts, board pay, share issuance and buybacks were approved with bigger majorities.
In April SMT gained shareholder approval for an extra £250m capacity to invest in unquoted companies after SpaceX’s doubling in value pushed its private equity holdings to 37%, above a 30% cap.
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