Murray VCTs shareholder revolt

A campaign to remove the directors of the three Murray VCTs, which have broken away from Murray Johnstone, is well on the way to achieving its aim. Last month, former money manager and executive director of Panmure Gordon Investments, Charles Clark, a shareholder in the three VCTs, asked for support from shareholders in each of the three VCTs to remove the directors of each fund, (see EVCJ June page 9.) Over 1,000 shareholders supported Clark’s campaign so far and as a result the company secretary of each of the Murray VCTs has confirmed that the issue will be added to the agendas for the forthcoming AGMs, which are expected to be held in July for Murray VCT2 and Murray VCT3 and December for Murray VCT.

Reasons for the campaign Clark cited in his letter to shareholders are: nine years of poor performance; a decrease in net asset value of the trusts with 45% to 65% of capital lost across the three trusts; a failed management buyout of the trusts; and a cost in directors’ fees of over £50,000 per year per trust. Taylor proposed five candidates to take the place of the current directors.

Shareholders will now have the opportunity to vote to remove the directors of all 3 VCTs at the AGMs and vote for new directors. Charles Clark has called on the current directors to call the AGMs for VCT2 and VCT3 as soon as possible.

He says: “We have waited long enough to hold the directors accountable. We call on them not to delay the AGMs any longer. We should not be deprived of the opportunity to promptly vote for new directors and to enable them to begin the task of restoring shareholder value as soon as possible.”