(Alliance News)-The co-founder of Wise PLC strongly criticized the governance changes on Monday deemed “inappropriate and unjust” as part of the project to transfer the main rating of the United Kingdom’s payment company to the United States.
Taavet Hinrikus addressed shareholders through his investment vehicle Skaala Investments or, which holds 5.1 % of the capital of Wise.
In his letter, he criticizes the projects of the company aimed at moving his main rating to an American scholarship, as well as the extension for an additional ten years of the voting rights of so -called “class B” shareholders.
The structure with two shares classes grants class B shareholders more than 90 % of the voting rights.
This type of structure is regularly criticized because it gives minority shareholders a disproportionate voting power on the decisions of the company.
In his letter, Skala Investments considers that the proposal “deprives owners of a fair choice and obliges them to accept a useless compromise, forcing a vote” all or nothing “instead of allowing shareholders to approve a double rating while rejecting a resolution granting prolonged voting rights to class B shares”.
“This prejudice to class A shareholders in diluting their voting power, for the benefit of some holding a significant part of class B actions – mainly the Director General, Kristo Kaarmann. »»
The investment group considers that it is “totally inappropriate and unfair to associate these distinct questions”.
He therefore calls on shareholders to vote against these proposals, unless the subjects are separated into two distinct resolutions.
The Wise Board of Directors responded to this letter by claiming “to take the opinion of Mr. Hinrikus very seriously”, while specifying that he did not agree with his point of view on the proposal.
The company believes that its proposals would allow “better visibility in the United States, the largest potential market for our products today”, and that the two-classes structure is “essential to guarantee the continuation of our performance and preserve our ability to execute our strategy”.
The London-based money transfer company unveiled its intention to transfer its main rating of the London Stock Exchange to the United States last month, in order to reach a wider basis of banking and investors.
Wise, founded in 2011 under the original name Transferwise, says that she did not turn his back in the United Kingdom, providing for a secondary rating in London and continuing to recruit and invest in its British teams.
A general meeting of shareholders must be held later this month so that investors decide on the proposal.
The Wise action fell 1.5 % to 1,023.00 pence Monday in London.
By Anna Wise, economic journalist, PA
Source: PA
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