CAPE TOWN – Brait’s share price slid more than 5 percent to R11.20 on Thursday afternoon as the market digested details of its annual general meeting (AGM), where not all resolutions were passed and a proposal for a new management incentive scheme was withdrawn before the meeting, which could flag shareholder discontent.
Christo Wiese, the owner of 36 percent of the shares in issue at investment group Brait, was re-elected with 70 percent of the votes at the AGM that was held in Malta on Wednesday.
An extraordinary resolution relating to the renewal of the board's authority to withdraw statutory pre-emption rights did not pass though, achieving a 72.4 percent vote in favour, relative to the required 75 percent.
Statutory pre-exemption rights relate to when and where new shares in the company are issued, the existing shareholders have an automatic right of first refusal to purchase these shares in proportion to their existing shareholdings.
Also, after the company "took into account input from various shareholders on the proposed ownership equity plan,” a resolution to approve the plan was withdrawn prior to the annual general meeting.