Dorchester to proceed with doomed liquidation vote
The Shareholders Association forced the company to call the meeting by gaining support from more than 5% of shareholders, though the activist group withdrew support when the repayment plan was approved. The special meeting on February 17, after the AGM, will also vote on removing chairman Barry Graham and Paul Byrnes as directors, another resolution the association has stopped supporting.
Still, Dorchester Pacific today said it feels obliged to proceed with the vote on liquidation even though there isn’t enough support among shareholders for the special resolution to garner the required 75% support.
Dorchester’s directors reiterated today that they oppose liquidation, saying it would prevent the company generating the returns needed to fulfill the deferred payment plan.
“Remaining a going concern presents shareholders with a better prospect of realising future value,” the company said in a statement.
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