QMH rescue hit by blunder: Resolutions passed at recent meetings found to be invalid

QUEENS Moat Houses' reconstruction plans were thrown into embarrassing confusion last night when the company admitted that resolutions passed at annual meetings were invalid.

An extraordinary meeting of shareholders may have to be called to sort out the mess, but the company said it would not disrupt the timescale for the current pounds 1.3bn refinancing talks with its 65 banks.

The confusion arose after it was discovered that certain preference shareholders had a unique right to attend ordinary shareholders' meetings. This right was not spotted by the company's solicitors, Allen & Overy, and there is now serious doubt whether the firm will continue to act for Queens Moat.

In a statement last night Queens Moat said: 'In the circumstances, the company has appointed Freshfields and leading counsel to assist the directors in resolving the complex issues raised.'

At an annual meeting on 26 August last year, Queens Moat's ordinary shareholders voted to increase the company's borrowing limits to pounds 2bn. It is now known that the resolution was invalid because holders of 7 per cent convertible preference shares were not invited to attend.

The company said the validity of other resolutions passed at the meeting, and at the reconvened AGM on 29 November last year, was also being reviewed.

Holders of the preference shares, 19 million of which were issued in 1985, were given a right to attend ordinary shareholders' meetings if a resolution at a meeting was likely to affect their interests. This right was overlooked by Allen & Overy. A similar oversight, this time by Clifford Chance, was made for the annual meeting in 1989. Resolutions passed at this meeting are also under review.

The oversight was discovered by Allen & Overy and was said to have nothing to do with Gary Klesch, the arbitrageur buying up Queens Moat stock, who has threatened legal action over unspecified matters.

The preference shareholders were said to be standard institutional investors, and Queens Moat was expecting quick co-operation. A Queens Moat spokesman said it was not yet known whether the company would need to call an extraordinary meeting or separate class meeting for the preference shareholders. 'This has only been brought to our attention in the last few days and there are still many legal matters to be sifted through.' He did not know which other resolutions would be declared invalid.

The company said that 'the validity and effectiveness of the group's existing borrowings cannot be called into question.'

News
Emma Watson has become the latest target of the 4Chan nude hacking scandal
peopleThreats follows actress' speech on feminism and equality at the UN
Life and Style
food + drink
Arts and Entertainment
British actor Idris Elba is also a DJ and rapper who played Ibiza last summer
film
Life and Style
tech
PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
tech
Life and Style
Alan Turing, who was convicted of gross indecency in 1952, was granted a royal pardon last year
life
Arts and Entertainment
Sheridan Smith as Cilla Black and Ed Stoppard as her manager Brian Epstein
tvCilla Episode 2 review: Grit under the glamour in part two of biopic series starring Sheridan Smith
News
i100
Life and Style
life
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

IT Project manager - Web E-commerce

£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...

Trainee / Experienced Recruitment Consultants

£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...

Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Day In a Page

Secret politics of the weekly shop

The politics of the weekly shop

New app reveals political leanings of food companies
Beam me up, Scottie!

Beam me up, Scottie!

Celebrity Trekkies from Alex Salmond to Barack Obama
Beware Wet Paint: The ICA's latest ambitious exhibition

Beware Wet Paint

The ICA's latest ambitious exhibition
Pink Floyd have produced some of rock's greatest ever album covers

Pink Floyd have produced some of rock's greatest ever album covers

Can 'The Endless River' carry on the tradition?
Sanctuary for the suicidal

Sanctuary for the suicidal

One mother's story of how London charity Maytree helped her son with his depression
A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits