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Lighthouse boss Hickey resigns after delisting failure
by Alex Steger on Aug 30, 2012 at 07:15
Lighthouse executive chairman David Hickey has resigned from the IFA group following its failed attempt to delist earlier this year.
In a statement released to the stock exchange Lighthouse said:
‘The recent proposal to shareholders that Lighthouse should cancel the admission of the company's shares to trading on AIM was unanimously supported by the board.
‘However following the general meeting of the company held on 31 July 2012 at which shareholders did not pass the proposed special resolution to approve the cancellation, David notified the board that, as the individual primarily responsible for liaising with shareholders, and continuing to believe that the AIM quotation was inappropriate for Lighthouse, it would be appropriate for him to step down.’
At the start of July Lighthouse announced plans to delist from AIM arguing that regulatory change and a wave of mis-selling claims in the IFA sector had made trading conditions too difficult.
However, the proposal was met with resistance from shareholders, notably Cavendish fund manager Paul Mumford and former Lighthouse joint chief executive Allan Rosengren, the biggest single shareholder with around 15%.
Mumford argued the directors were looking for a quick sale of the company and criticised the impact the plans had on Lighthouse’s share price, which fell from 5.75p to 3p on the day of Lighthouse announced its plans to delist.
On 31 July, following shareholders vote against the plans to delist, Hickey told New Model Adviser® he had no plans to step down.
'I have no plans to step down but I have no idea what conclusions the board will come to, if it discusses it,' he said.
His resignation comes weeks after shareholders Rock Holdings Limited and Southern Rock Insurance Company, who together own 5% of the group's shares, requested a general meeting to propose a resolution to remove Hickey as a director.
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