Union Properties’ shareholder groups seek directors’ ouster
Proposal to come up at developer’s upcoming general assembly
Will Union Properties see wholesale changes to its Board of Directors? One of Dubai’s leading developers has confirmed that such a proposal on reconstituting the Board of Directors will be one of the topics on the agenda at the next general assembly meeting, which has been called for on October 26. This was brought on by two groups of UP shareholders – each representing 5 per cent of the shareholder base - filing appeals for such a change.
Union Properties confirmed that it had received an “email from the Securities & Commodities Authority” to introduce the proposal for the dismissal of “all the members of the Board of Directors”. The developer had been talking of a turnaround plan that would help it reclaim its status as one of the biggest names in the local property market.
A bit of a surprise
Market watchers say the shareholders’ moves come as a surprise, more so as the developer has markedly improved its financials and on the operational side as well. Last year, there was the rescheduling of a near Dh1 billion loan from Emirates NBD, while just a few days ago, the company got back into offplan launches with a set of mid-rise buildings at Motor City.
Union Properties confirmed that it had received an ‘email from the Securities & Commodities Authority’ to introduce the proposal for the dismissal of ‘all the members of the Board of Directors.’
Get it on the agenda
It will be up to the regulator SCA to give the go-ahead to list the shareholders’ proposal on the agenda for the October 26 general assembly.
Until a final decision is taken by a majority at the general assembly, the “members of the Board of Directors will exercise their current duties…”, the developer confirmed.