Shareholder revolt but Cosalt re-elects pair to the top jobs

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Shareholders in troubled offshore services group Cosalt voted in favour of re-electing chairman David Ross and chief executive Trevor Sands, although shareholder rebels claimed a victory as 17 per cent of investors voted against the resolutions.

The Grimsby-based group is trying to secure a long-term financing solution after it was brought to its knees by a heavy debt burden and alleged fraud.

Rebel shareholders claim they face losing their entire investment in Cosalt. In February, they voted against plans by Mr Ross to take the company private, saying the offer was derisory.

Yesterday a resolution allowing Cosalt to give shareholders 14 days’ notice before general meetings, aside from AGMs, was also voted against by 17 per cent of shareholders.

A spokesman for SORT, which stands for ‘Stop Oval-Ross Takeover’, said: “We’re happy that 17 per cent of shareholders voted against the resolutions.

“It’s a very strong vote against given we haven’t had time to campaign. This is a very strong message of dissent by small shareholders.”

A spokesman for Cosalt said: “All resolutions were passed with over 80 per cent of shareholder support and the board remains focused on finding a long-term funding solution for the company.”

SORT members will meet a cross-party group of MPs on July 4 to voice their dissatisfaction with the Cosalt board.

Earlier this month, Cosalt secured a one-month loan extension from major shareholder David Ross.

The repayment of a short-term £1m credit facility provided by Mr Ross was extended until June 30.