Brazilian ex-minister may be ousted from investment trust
Friday 30 January 1998
Mailson Da Nobrega is among six directors of an investment trust who face a humiliating vote today to remove them from the board of the pounds 45m investment trust, known as Brazit, at an extraordinary general meeting.
Other directors include Michael Hart, director-general of the Association of Investment Trust Companies, Fred Packard, a founding partner of Garantia, a Brazilian investment bank, Desmond Cameron and Peter Burnell, both of Dresdner Kleinwort Benson.
Hermes, the investment house which manages BT's pounds 20bn pension fund, has linked up with City of London, a former asset manager, to vote out the entire board of Brazit. The two fund managers together hold a stake of more than 60 per cent.
Hermes claims the board of Brazit failed to condemn a decision by the trust's investment managers, Foreign & Colonial Emerging Markets, to buy 19 per cent of warrants in the trust - potentially allowing F&C to resist pressure to remove them as managers. The decision outraged the majority shareholders, who had already clashed with the board over plans to revamp Brazit and turn it into a unit trust.
Brazit's directors yesterday launched a strident counter-attack on Hermes and City of London, saying they had always acted in the interests of all shareholders. "We thought it was better to deal with F&C rather than just fire the managers in the middle of the worst bear market in memory," said one director, who asked not to be named.
Michael Hart, who has already offered to resign, said: "This is all about some people thinking investment trusts are a load of rubbish which should all be wound up. Part of the problem is that Hermes have just gone completely over the top on corporate governance."
- 1 Forget 'The Dress': Here are five of the biggest news stories you might have missed
- 2 The black and blue dress: Makers considering a white and gold version
- 3 PornHub turns masturbation into energy in bid to save the planet
- 4 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
- 5 Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
British are sexually uptight, dirty and drink too much – according to Spanish book
PornHub turns masturbation into energy in bid to save the planet
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...