Business Day (Johannesburg)

South Africa: Simmers Looks to Court to Stop General Meeting

Johannesburg — SIMMER & Jack yesterday applied for an urgent interim court order to stop an extraordinary general meeting of shareholders from being convened, in the latest twist in the boardroom battle between the company and its empowerment partner, Vulisango.

The move by Simmers appears to be an effort by the junior miner to block attempts by its empowerment partner to unseat the board.

Two weeks ago Vulisango requested an extraordinary general meeting. Simmers was to have notified shareholders by the end of the week when the meeting would be held.

A Simmers spokesman said yesterday the formal request for the meeting was made by the provisional liquidators of Xelexwa Investment Holdings -- a subsidiary of Vulisango through which it holds the 22% stake in Simmers. Xelexwa is under liquidation.

"Simmers is seeking clarity from the court as to the legal authority of the Xelexwa liquidators to requisition the general meeting," the company said.

A letter from Vulisango CEO Valence Watson was written in support of the liquidators' request for the extraordinary general meeting, Simmers said, adding that Xelexwa's liquidation raised concerns about the legal status of Vulisango.

"Simmers has been advised that only members of companies may requisition, convene or hold a general meeting, in terms of the Companies Act," it said.

Watson yesterday said the latest move by Simmers was meant to obstruct the bringing in of a new board that would unlock shareholder value.


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