Quindell cites rules to keep ballot secret

EMBATTLED Quindell faced down investors yesterday following a disastrous year – but then refused to say how many voted to support it.

The technology firm used a loophole in listing rules to avoid detailing the results of the shareholder ballot at its annual meeting.

It insisted all of its resolutions, including policies over pay and voting for directors, were passed.

But it refused to publish details of how many voted against or withheld their votes in protest because it is on the junior investment market – making it impossible to verify the scale of investor anger.

In an unusual move, journalists were also banned from the annual meeting. The company has seen its share price slide after claims made by shadowy research group Gotham City Research that it was ‘built on quicksand’.

A 74-page dossier published by the short seller wiped almost 40pc from Quindell’s market value earlier this year, after claiming that 80pc of its profits were ‘suspect’.

Quindell fiercely denied the accusations and has begun legal proceedings against Gotham.

In a humiliating blow, last week the group (down 0.75p to 17p) saw its plea to move from the junior AIM market to the main London Stock Exchange thrown out by regulators. At the annual meeting it unveiled a board restructuring aimed at appeasing shareholders, who were said to be supportive of the move. Services boss Robert Fielding was promoted to chief executive, meaning founder and executive chairman Rob Terry will relinquish some of his influence over the day-to-day running.

In the late 1990s Terry set up Innovation Group. However, the share price collapsed in the wake of accounting problems and he subsequently left the board.