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AIM delistings – Security Research and Rethink

Delistings of AIM companies always distress investors. Out of the blue your shares in a company can drop in value very substantially, and you can be left holding an unsaleable stock. Two recent announcements of delistings have been Security Research (SRG) and Rethink (RTG). These are both companies with patchy trading histories and low market capitalisations (£9m and £5m respectively after the announcements). It requires a vote of 75% of shareholders to approve delisting. In the case of Security Research the General ...

ShareSoc Welcomes BG Group Decision but calls on Sir John Hood to Resign

ShareSoc is delighted by today’s news that BG Group has decided to withdraw the conditional share award that was proposed for new CEO Helge Lund. This is a good illustration of active shareholders being able to influence corporate policy and restrain abuses. However, today’s announcement, including acceptance by Mr Lund of the revised terms, clearly demonstrates that the original proposal was excessive and unwarranted. It is obvious that insufficient consultation with shareholders had been conducted before the proposed package was announced, as ...

Bradford & Bingley & Northern Rock Bond Tenders

Bradford & Bingley Plc have announced a new tender offer for the subordinated bonds. These are what were formerly called PIBS which were issued before the company converted to a bank. These bonds remained outstanding when the company was nationalised in 2008 and have continued to be listed and tradable. But the previous tender offers were not considered very generous, although the market price has been slowly recovering on the expectation that the mortgage assets of the company would exceed its ...

Tesco Legal Action – or should we just “put our hands up”?

Law firm Stewarts Law has announced that it is preparing a case against Tesco based on the losses of investors in the company from the overstatement of profits. To quote from their announcement: "The Claim will allege that directors and senior management knew or were reckless as to whether Tesco's statements to the market were untrue or misleading and/or dishonestly concealed the true position, in breach of the Financial Services and Markets Act". They don't intend to await the results of ...

BG Group EGM on pay award to new CEO

BG Group - A personal view by ShareSoc director, Mark Bentley BG Group will be holding an EGM on 15th December to consider a resolution to approve a “Conditional Share Award” for newly appointed CEO Helge Lund. Details can be found here: http://www.bg-group.com/assets/files/cms/2014Meeting_ShareholderCircular.pdf Mr Lund’s appointment was announced on 15 October 2014, taking effect from 2 March 2015. He has served as CEO of Statoil, the Norwegian oil and gas company, since August 2004. Prior to Statoil, Mr Lund was the CEO of ...