GT Japan shareholders sack all board members

GT Japan Investment Trust, a London-listed vehicle for investing in Japanese equities, sacked its entire board and its fund manager yesterday at an extraordinary general meeting.

The EGM, co-ordinated by GT Japan's former fund manager Invesco Asset Management, which was dismissed in December, saw 57 per cent of the votes cast in favour of a new board. The six board members were dropped in favour of a three-man board, chaired by Philip Stephens. The revamped board has a mandate to restructure the £65m trust as an investment trust or a unit trust, whichever shareholders favour. Either way, it will be managed by Invesco and delisted. Sloane Robinson, the boutique firm that replaced Invesco in December, was voted out. Five institutions supported Invesco in its campaign to be reinstated, while many retail investors voted against the EGM resolutions.

Mr Stephens said: "It is unusual for a board to be appointed by shareholders in such circumstances and with a specific mandate."

Earlier this month, Anthony Bushell, the then chairman of GT Japan, said: "The real corporate governance issue ... is having independent boards who will stand up for shareholders' rights against large fund managers. This we have done, and continue to do so, in spite of any threats from Invesco." He said the EGM called by Invesco was a "self-serving" attempt to win back the GT Japan work. He added that Invesco was dismissed after it had underperformed by 40 per cent over the previous three years.

Adam Cooke, the director of specialist funds at Invesco, said the row was over a "point of principle". He said that investors who did not elect to take part in a shareback at GT Japan last year thought they were sticking by a trust managed by Invesco.

"We requisitioned an EGM to allow shareholders choice," Mr Cooke said.