Rival fund manager Denison Funds Management (Denison) has claimed a unitholder meeting to discuss improving the liquidity in the 360 Capital Industrial Fund by listing it on the Australian Securities Exchange resulted in a "contentious showdown".
The Friday 14 September meeting at the offices of Clayton Utz lawyers in Sydney was attended by around 75 members, according to a release from Denison.
Denison, which has proposed itself as the new responsible entity for the fund, said that fund chairman Peter Willcocks of Lander & Rogers Lawyers said he was instructed by 360 Capital to adjourn the meeting to give investors more time to consider a Lonsec report published on 11 September 2012.
Denison Funds Management chief executive Matthew Burrows said that Lonsec has actually requested the report be removed from 360 Capital's website. This was confirmed by Lonsec research manager, direct assets, Kevin Prosser who told Money Management the report is prepared exclusively for clients so 360 Capital is not entitled to republish the information without permission.
In the Denison release, Burrows said a majority of members at Friday's meeting was opposed to the adjournment and a motion that Willcocks be replaced as chairman by Owen Lennie received overwhelming support in a show of hands.
Burrows claimed "Lennie was almost physically prevented from taking the chair by a partner from Clayton Utz – a move which many found totally unacceptable".
Willcocks confirmed to Money Management that he "opened the meeting, welcomed those present, confirmed that there was a quorum and advised the meeting that it was to be adjourned to allow unitholders to consider more fully the Lonsec report".
Willcocks said he then adjourned the meeting to 5 October and no vote was taken on the adjournment as the power to adjourn is solely that of the chair.
"I then closed the meeting and left the meeting. No vote to replace me as chair was put during the meeting or, indeed, whilst I was present," he said.
The Denison release continued: "According to those in attendance, 360 Capital and Clayton Utz staff further hindered the meeting. Clayton Utz turned off the lights, switched off the microphone, directed the appointed share registry to leave and asked security to escort all members off the premises".
Denison said it had been approached by a group of investors, representing 9.2 per cent of issued capital in the 360 Capital Industrial Fund, to take control of the fund and eject the existing management team and responsible entity.
A unitholder meeting to vote on the proposed change of responsible entity will be held at 10.00am on 17 September.
360 Capital described Denison's proposed takeover as opportunistic and not in the interests of members. The proposal has no takeover strategy, distributions will cease and it is likely the fund will be wound up under the proposal, according to 360 Capital.
