Sequoia provides EGM update

An EGM was held on 5 June seeking to remove Crole and director Kevin Pattison and to appoint Peter Brook and Brent Jones as replacement directors.

The meeting had been delayed by one day at the request of the Takeovers Panel.

In an ASX statement following the meeting, Sequoia said none of the resolutions were passed.

The four resolutions were all defeated by a majority, garnering between 62–64 per cent.

Questions were raised in the run-up to the meeting regarding certain shareholders and whether their votes would be counted. Namely, Sequoia contacted the Australian government’s Takeovers Panel in May regarding alleged unethical practices by rogue shareholders.

The firm alleged the shareholders in question:

• Failed to fully disclose the identity of those who are associated with them, the nature of their association and the extent of their collective voting power in Sequoia.
• Purchased additional Sequoia shares resulting in increases in collective voting power above 20 per cent in Sequoia, under Sect 606.

The relevant shares relate to 7,448,378 Sequoia shares (5.6 per cent of the share capital) that were acquired after 31 March 2024 by or on behalf of Glennon Capital Pty, Glennon Small Companies, Cojones Pty or Vonetta Pty.

With the decision still before the Takeovers Oanel, Sequoia said this week that if the resolutions do not pass at the board vote meeting, and any resolution not passed would have been passed if the votes attached to the relevant shares had been cast in favour of that resolution, the firm would call and arrange a further general meeting no later than 5 July.

However, following the meeting, Sequoia confirmed in the ASX listing that although it disregarded the exercise of voting rights attached to a total of 7,448,378 shares, none of the resolutions would have been passed even if the disregarded votes had been included in the polling of shareholders.

“Sequoia therefore believes that it is not required to hold a further general meeting under the terms of its undertakings to the panel.”