Speech recognition services provider Eckoh has fought off an attempt by 12% shareholder OCS Trading to have its own nominee appointed as chairman.
OCS wanted John Samuel appointed to the board as chairman and to remove Peter Reynolds as a director, who already has plans to step down anyway.
Eckoh said that the resolutions were rejected “by the vast majority of shareholders that voted” at the general meeting on 4 September 2009. That may be a little bit excessive. The resolutions relating to Samuel received around 42% of the votes and the resolution to remove Reynolds received more than 46% of the votes. That means that 58% of the votes were cast against the main resolutions – a comfortable but hardly an enormous majority.
OCS is a subsidiary of Aim-quoted ORA Capital Partners and it appeared particularly interested in the company’s cash pile.
Eckoh had net cash of £5.2m at the end of March 2009 plus £3.2m to come from the sale of Symphony to telecoms services provider Redstone and another disposal. Management says that it is in discussions with Redstone about this payment. Redstone recently sold part of its business to Daisy, which has eased its financial problems.
At 8.25p a share, Eckoh is valued at £16.5m.
Eckoh is expected to report a profit of £700,000 in the year to March 2010 and there are opportunities to expand in Europe.
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