Foxtons addresses shareholder AGM opposition
The estate agency brand saw opposition to key votes at its annual general meeting on dividends and share allocation.
Foxtons has been engaging with its largest shareholders following opposition to its dividend and share allocation policy.
Five resolutions at Foxtons’ annual general meeting in May received significant shareholder opposition.
A resolution for a final dividend of 0.93p per share passed with 75% of votes but still had 25% of votes against the move.
Foxtons says: “The votes reflected feedback from certain shareholders that the payment of a final dividend should not be a capital allocation priority and that available capital may be better deployed towards other strategic and financial priorities of the business.
“The board has carefully considered this feedback as part of its ongoing review of the Company’s capital allocation framework.”
The purpose of these resolutions is to afford the board flexibility to act quickly in response to changing market conditions.”
Two resolutions to let the company issues new shares to outside investors failed to pass after receiving around 38% of votes against. With just 61% backing the resolutions, the board failed to get the required 75% majority needed to pass.
Foxtons says: “The purpose of these resolutions is to afford the board flexibility to act quickly in response to changing market conditions, should the appropriate circumstances arise and should it be in the best interests of the company.
“The board remains committed to maintaining an open and transparent dialogue with shareholders and will proactively engage with shareholders on their corporate governance policies and any other concerns prior to the next AGM.”
Political donations
A resolution to support political donations was also opposed by 28% of votes but Foxtons says it does not give any money for political purposes, nor does it make any donations to political organisations or incur political expenditure.
Foxtons adds: “In line with UK market practice, the authority was requested as a precautionary measure as the definitions of political donations and political expenditure used in the Companies Act 2006 are very wide, to ensure that the company does not inadvertently breach the relevant provisions.”
