Laxey Partners is trying to force Indian developer Hirco into changing three directors and installing an independent chairman.
The London activist shareholder, which manages two AIM listed funds, the Value Catalyst Fund which was launched in 2000 and the Terra Catalyst Fund which was launched last year owns around 1o percent of Hirco.
It has called for an extraordinary general meeting to oust current chairman Niranjan Hiranandani, plus non-executive directors David Burton and Nigel McGowan. It has also proposed appointing external executives to the company, including Laxey co-founder Andrew Pegge and Laxey executive Michael Haxby among others to the company.
Hirco said in its statement that it is taking legal advice on how to deal with the proposal which it said were “not in the company’s best interests” and were “misguided”.
Last month the Hiranandani family’s capitulated to shareholders by deciding not to reverse a loss-making family-owned company into Hirco to bump up the family’s share ownership. Laxey argued that a merger would see existing investor stakes heavily diluted.