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Stock Spirits – A More Direct Approach

I have commented on the affairs of Lakehouse recently where disgruntled major investors have requisitioned an EGM to replace all the non-executive directors. One commentator asked why the investors did not try to change the CEO also. A more direct approach is being taken at Stock Spirits (STCK) where concerned shareholder Western Gate Private Investment, who own 9% of the company, have submitted a requisition to remove the CEO, Chris Heath, and also appoint two new experienced non-executive directors. Stock Spirits is ...

Prime Minister Resigns

PM resigns over disclosures from Panamian lawyers. Ah but that's not our David Cameron, but Iceland's Prime Minister Sigmundur Gunnlaugsson after previously denying in a televised interview that his family had any offshore investments. David Cameron spelled it out. He holds "no shares, no offshore trusts, no offshore funds, nothing like that" he said in a statement. My immediate reaction was "what a pity". The failure of politicians to hold shares in listed companies means that they end up with no understanding ...

Lakehouse – Corporate Governance is Not Just About Box Ticking

The affairs of Lakehouse where major investors Slater Investments and Steve Rawlings have requisitioned an EGM to remove and replace the non-executive directors has been covered in previous blog posts. Slater has now issued some explanation for the reasons which can be read here: http://www.investegate.co.uk/slater-investments/rns/egm-statement/201604010700107965T/ The board of Lakehouse criticised the three new directors proposed on the basis that they were not independent and hence that corporate governance rules were being broken. The requisitioners say though that "Corporate governance is not just ...

Active Equity Funds Underperform – But What About Passive Funds?

Last Monday (21/3/2016) there was a front page story in the FTfm supplement which was headlined "86% of active equity funds underperform". The article said that a study by S&P Dow Jones Indices showed that "almost every actively managed fund in Europe investing in global, emerging and US markets has failed to beat its benchmark over the past decade....". The article went on to question the value added by stockpicking fund managers at some length Now it immediately struck me that the ...

Lakehouse and Tungsten

To follow up on my previous report on a presentation by Lakehouse directors following a requisition submitted to remove three of the non-executive directors, the company has now published a 21 page document giving their reasons why shareholders should support the board. As is customary in these battles, the board "unanimously recommends you vote against the resolutions" to remove the three new directors and appoint new ones. I said in my previous note that it was "all still a puzzle" as it ...