MacarthurCook Funds Management has now set a time and date for the requested shareholder meeting:
When
11am, Wednesday 4 September
Where
K&L Gates
Level 31
1 O'Connell St Sydney
K&L Gates are a law firm. The independant directors all recommend voting against the proposal to wind the fund-up on the following grounds:
I'm not convinced by the first and third points: it's more of a call on the property market rather than a reason to keep the fund open. Regarding the second point, I would like to see some data to support that claim. Which assets are illiquid? What is the potential haircut? The proposal is to wind up the fund over three years, so is illiquidity really that big a problem? Fourth and fifth points: fair questions, however they are easily answerable and therefore not admissible as a rebuttal.
I must admit I can't get excited about keeping current management in place based purely on these arguments. There is literally no hard evidence presented as to why shareholders should not vote for a wind-up. Just general observations. Strange, considering previous communications outlining the plan to resume distributions and other capital management strategies.
More to follow.
Kristian
Disclosure: own MPS
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