On 30 June 2003 EC-Hold was requisitioned by certain minority shareholders of EC-Hold, being Republic Nominees (Pty) Ltd and Standard Bank Nominees (Pty) Ltd to convene a general meeting of EC-Hold shareholders, to put ordinary resolutions regarding:
* The proposed appointment of PricewaterhouseCoopers Inc. to conduct a forensic audit and investigation;
* The proposed disclosure of:
- the rationale and details of an investment with MGX
* A proposal for future proceedings by EC-Hold against MGX
* A proposal for future proceedings by EC-Hold against current and former directors of EC-Hold relative to any investment of surplus funds with MGX
A circular containing the above-mentioned resolutions will be posted to shareholders on Wednesday, 30 Jul 03. The general meeting is to be held at 09:00 on Thursday, 28 August 2003 at the registered office of EC-Hold.
The Board is of the view that the requisitioning shareholders have not adequately considered the loan account relationships between the MGX group and the EC-Hold group, as fully disclosed in the audited accounts of EC-Hold at 30 Jun 02. These reflect that the EC-Hold group was a net debtor of the MGX group at that date. In the opinion of the Board, these facts make the proposed ordinary resolutions meaningless.
In the interest of transparency, Webber Wentzel Bowens, on instructions of the board, invited the requisitioning shareholders to request whatever detail information they required from EC-Hold.
Shareholders have been advised of the interaction between MGX, The Mandy
Rebecca Price Trust and the Securities Regulation Panel relating to a possible offer to certain of the shareholders of EC-Hold. The company has been advised that MGX intends to actively engage with the SRP with a view to achieving an appropriate settlement which may form part of the court sanctioned restructure of MGX to be proposed to its shareholders and creditors shortly.
MGX is at present considering its alternative courses of action that could be taken as a result of the SRP ruling of 19 Mar 02. Accordingly, EC-Hold shareholders are advised to continue to exercise caution when dealing in their shares until a further announcement is made.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
