Tech firm Nanoco is opposing the nomination of two board directors.
- A general meeting has been summoned to address the resolution.
- Milkwood Fund, a stakeholder, called for the board appointments.
- Nanoco questions the suitability and intentions of the nominees.
- Concerns revolve around potential disruptions to strategic company goals.
Nanoco has recently galvanised its shareholders by issuing a firm advisory against the proposal to appoint two new directors to its board. The proposed appointees, Rhys Summerton and Andre Tonkin, are backed by the Milkwood Fund, which holds 5.6% of the voting rights in Nanoco. Asserting a lack of clarity in the requisition notice submitted by Milkwood, Nanoco’s board remains unconvinced about the nominees’ capability to serve a listed company.
Milkwood Fund’s impetus behind the board nominations appears questionable, as highlighted by Christopher Richards, the Non-Executive Chairman of Nanoco. He expressed doubts about the relevance of the candidates and cited prior attempts by Milkwood to wield influence over undervalued entities, including an unsuccessful bid to seize control of Downing Strategic Micro-Cap Investment Trust plc.
Previous interactions with Mr Summerton have only heightened Nanoco’s scepticism. He has allegedly voiced intentions to transform Nanoco into an investment enterprise, potentially acquiring a substantial share in the company, followed by swift asset liquidation. The board interprets this as a mission to conserve surplus funds, which could indeed contradict the expectations of Nanoco’s shareholders.
As Nanoco continues to explore acquisition prospects for its trading operations, the board’s apprehension about Milkwood’s resolutions becomes more pronounced. The potential alteration in leadership could significantly impede Nanoco’s strategic objectives, thus underscoring the necessity for shareholders to reconsider the validity of such appointments.
The imminent general meeting will be pivotal in determining the future governance structure of Nanoco amidst contentious shareholder proposals.
