When is a shareholder meeting not a shareholder meeting? When the only resolution at the meeting is to adjourn it...
Shares in Hornby, beloved of former small boys everywhere thanks to its Airfix kits and model railways, rallied today after the company successfully warded off an attempt to oust its chairman - and ended up with a very awkward shareholder meeting in the process.
Back in April, investors Ian Alexander Anton and New Pistoia, who between them own 20 per cent of the company, called a requisitioned general meeting (RGM), with two resolutions: to boot chairman Roger Canham off the board, and to elect Anton himself in his place.
However, last week investors representing 54 per cent of Hornby's shares signed irrevocable undertakings to vote against the resolutions, meaning they could never have passed.
That left Hornby with a shareholder meeting, which under corporate governance rules it must hold, and one resolution: to adjourn the shareholder meeting. Today the so-called requisitionists published a statement saying they intended to back that resolution. Big of them.
Still, investors seemed happy: shares were up 2.7 per cent at 32.7p in mid-afternoon trading. Although Hornby urged its shareholders to make sure they vote for the resolution - even if they can't be there for the company's big day, they can still do so by proxy.
Read more: Airfix gets its own crowdfunding project