Flybe confirms shareholders will vote on whether to remove Chairman amid pressure by major shareholder

Writer, Stock Market Wire
Monday, February 4, 2019 - 08:02

Flybe confirmed Monday it had received a valid request from major shareholder Hosking partners to convene a general meeting calling for the ouster of its chairman after the regional carrier agreed to a takeover bid.

Hosking had been instructed to procure a valid request to convene a meeting under section 303 be submitted after Flybe deemed the initial request submitted last week as invalid.

A general meeting of shareholders to consider the resolutions to appoint Mr Eric Kohn and remove Mr Simon Laffin as directors of the company would be called within 21 days from 1 February 2019, Flybe said. The meeting would be held on a date not more than 28 days after the date of the notice convening the meeting.

Flybe recently agreed to be acquired by a consortium involving Virgin Atlantic and Stobart Group for just $2.8m.

The company also received a further resolution from Hosking seeking the directors of the company to appoint Mr Kohn to conduct an investigation into the sales process from 14 November 2018 to 15 January 2019, Flybe said.

But Flybe reminded nominees of Hosking that 'this resolution would, if proposed, be ineffective as the company's Articles of Association do not confer on members the necessary powers.'

'The board is writing today to Mr Kohn to invite him to meet with the Nomination Committee of the Board in accordance with its procedures applicable to the assessment of Board candidates.'

'Following this meeting, in the circular to shareholders accompanying the notice of general meeting, the Board will make recommendations to shareholders in relation to the resolutions.'

At 8:02am: (LON:FLYB) FlyBe share price was +0.9p at 4.1p

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