Plan to oust Hiranandani from Hirco gets rejected

The move by hedge fund Laxey Partners to throw out the Hiranandanis from the board of London-listed realty firm Hirco Plc was rejected by majority shareholders at the companys extraordinary general meeting. Douglas Gardner,independent non-executive director of Hirco,said: As a board,we considered the Laxey proposals ran directly against the interests of the company. Hircos objective is to achieve long-term returns from close and sustained cooperation with the Hiranandani organisation and its development projects. We are delighted that our shareholders agree. In a poll of over 80 per cent of the share register,all resolutions were rejected by a substantial majority.

In a statement,a representative of HSBC Private Bank said: HSBC Private Bank,on behalf of their clients who in aggregate represent a large shareholding in Hirco with over 10 per cent,is supportive of the current management of Hirco PLC and the Hiranandani family and has voted against all of the Laxey resolutions. HSBC Private Bank will continue to engage with Hirco and the Hiranandani family to help maximise shareholder value.

Laxey earlier said directors of the company should consider appointing a director who is independent of the Hiranandani family to act as chairman. Laxey proposed to remove Niranjan Hiranandani,David Burton and Nigel McGowan as directors of the company and appoint Andrew Pegge,Michael Haxby,John Bourbon and Aled Rhys-Jones as directors of the company.

Laxey acquired an interest in 6.07 per cent of the company in July 2008 and in October began to agitate for change. Its rift with Hirco started as the board proposed to merge its two special purpose vehicles based in Mumbai and Chennai with itself.