Contango MicroCap cuts directors’ fees
Contango MicroCap, an ASX-listed investment company (LIC) investing in entities with a market cap of up to $350 million, has announced a reduction in directors’ fees with immediate effect as well as a review of the second manager appointed by the company’s previous board.
Under the new terms, the fees being paid to each incoming non-executive directors, Trevor Carroll and Ken Poutakidis, would be $30,000 per annum while the fee of chairman, Mark Kerr, would be reduced to $60,000.
The company also said that non-executive director, Alistair Drummond did not receive any fee for his role.
What is more, no additional fees would be paid for membership of board committees.
Additionally, the company’s new board said it would review the adoption of a multi-manager strategy as well as the appointment of its second manager.
In December 2016, Contango MicroCap announced that its previous board had approved “changes in the strategic and operational direction” of the company, making it a multi-manager operation.
Following this, in February the previous board appointed OC Funds Management as its second manager however the shareholders’ approval was not sought before the appointment.
According to the current board, such a move was viewed as the “material departure from the company’s stated investment objective”.
“The current board is in the process of considering how both portfolios are supervised and the overlap of investments and compliance arrangements are best addressed,” the company said in its letter to shareholder.
“Accordingly, the board is presently undertaking a review of the second manager arrangement to understand the options available to it and will keep shareholders informed of any further developments in this regards.”
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