Leading shareholders at residential landlord Mountview Estates (MTVW) have torn up one treaty and replaced it with another. In order to block a takeover of the company, the Sinclair family concert party, which has existed since 1999, was disbanded last week only to be replaced by another, more select, shareholder grouping.
The new agreement no longer requires its members to vote as a block in general meetings, but still dictates procedure in the event of a takeover attempt. The members hold 53.5 per cent of the company's shares. Chief executive Duncan Sinclair is among the signatories, but his sister Margaret Murphy, the largest shareholder, is not. External shareholders report tensions between Mr Sinclair and his brother-in-law Mr Murphy at annual general meetings.
Mr Sinclair unexpectedly stepped down as chairman after 23 years in June in favour of an outsider, John Fulton, but remains chief executive. "Good corporate governance dictates the splitting of the two roles and we believe that now is the right time to take this step," he explained.
