Investor's Champion Blog
Provides refreshingly forthright, independent comment on predominantly small cap companies and specialist investment funds. Informed opinion, based on first-hand research, but pulls no punches in exposing management weaknesses.

INDIAN FILM COMPANY - Disgruntled shareholders haven’t actually elaborated on what they intend to do!

I find it somewhat strange that the material shareholder (Altima Indian Master Fund) proposing the removal and replacement of 2 of the current Directors of the AIM quoted Indian Film Company hasn’t actually provided a full ‘formal’ explanation of reasons for suggesting this ‘drastic’ course of action. Altima has formed the IFC Requisition Group (‘IFCRG’) to engineer this, currently claiming the support of 32% of the shareholders.

The current board on the other hand has posted a circular to shareholders providing a full explanation as to why they don’t consider the rebel’s proposals to be in the best interests of the company and shareholders.

Altima has complained that the returns received by IFC have not materialised into returns for shareholders – welcome to the stock market of 2008/09 boys!

IFCRG plans a "review of the business, including an assessment of past performance and future strategy" if its resolutions are passed. Well that really tells us a lot!

The group only floated on 18th June 2007 with funds raised deployed over a period of 18 months. I would suggest there has been little time to properly assess trading performance. Furthermore, I can’t see what justification there is for the suggested appointments as the individuals concerned don’t appear to have any specialist knowledge of the industry.

I would agree that the board should come out with a detailed response to those financial queries but rather than simply make criticism of a general nature IFCRG’s position would be more credible if they put forward a detailed well supported proposal. The proposed removal of key board members would appear to justify this, at least!


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