Wednesday, July 13th, 2011 - Advocate Partners Pty Ltd
A major shareholder in listed company Premium Investors Limited (“PRV”) is seeking liquidation of the company's investments.   

Shareholder advocacy group, Advocate Partners today announced that it had called on PRV’s directors, under clause 14 of its constitution, to give shareholders the opportunity, at its next annual general meeting, to vote to cease the company's business.

Investment director of Advocate Partners, Mr Michael de Tocqueville said today that PRV's shares had been trading on average at more than 21% below NTA for the past 16 months.

"It is no secret that externally managed listed investment companies are unpopular in the market, and for good reason. PRV has completely outsourced its investment management and has a built-in high cost structure with no benefit in terms of risk management,” Mr de Tocqueville said.  "PRV remains a high-risk, high-cost investment vehicle.”

He said PRV's constitution provides that if the shares trade at less than 90% of NTA for 12 consecutive months, shareholders are given the opportunity to vote by way of an ordinary resolution at the next AGM on the continuation of the company's business in its present form or otherwise.

 "Advocate Partners has asked the directors to place a resolution before the AGM to discontinue PRV's business - to exit all investments, return capital to shareholders, and realise the listed vehicle and tax benefits," Mr de Tocqueville said.

The next AGM of PRV is expected in late November this year.
 
In a letter to PRV’s Chairman of Directors, Mr Tom Collins, dated June 23 this year, Mr de Tocqueville outlined his concerns and his call for a resolution to be put to the AGM.

“Mr Collins replied on July 6 saying that the board was ‘fully aware’ of its obligations and it would ‘act accordingly’ but his response gave no indication of what the board proposes,” Mr de Tocqueville said.

“I believe the time has come for shareholders to be given the opportunity to vote on the future of the company.  Shareholders have been locked into a dysfunctional structure for too long.”

Contact:

Michael de Tocqueville
Investment Director

Advocate Partners Pty Ltd
Level 27, 101 Collins Street
Melbourne 3000 VIC
Australia

+ 61 3 9653 9083
+ 61 3 9653 7373
+ 61 402 039 993

[email protected]
www.advocatepartners.com.au

Contact Profile

Advocate Partners Pty Ltd


Advocate Partners is a private company established specifically to undertake active shareholder advocacy as a means of achieving superior returns on share investments.

"We believe ethical, clean investments with high governance standards and an unyielding focus on shareholder objectives translate into greater shareholder returns."

Michael de Tocqueville
Investment Director
Michael de Tocqueville
P: +61 3 9653 9083
M: 0402 039993
W: www.advocatepartners.com.au/

Keywords

Premium Investors, PRV, Advocate Partners, advocacy, shareholder activism, constitution, governance, shareholders, investment director, investments, nta, Michael de Tocqueville, corporate governance,

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