29 April 2015
Alliance Trust has reached an agreement with Elliott Advisors, avoiding a shareholder revolt at the firm's AGM
Alliance Trust reached agreement with Elliott Advisors just in time to deflect a shareholder revolt at the Dundee-based firm’s AGM. Anthony Brooke and Peter Macnamara, two of the three non-executive directors nominated by the US hedge fund, will be elected to the board.
Elliot, which holds a 12% stake, had criticised Alliance for not performing as well as other investment trusts and for bonus pay awarded to chief executive Katherine Garrett-Cox. The deal prevents Elliott from calling a general meeting or seeking to ‘agitate against the company’ until after the 2016 AGM.
At the meeting held on 29 April, Chairman Karin Forseke revealed to shareholders that the dispute had cost Alliance Trust £3 million.