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Tech firm shareholders threaten litigation to get EGM

Apr 12 2018 16:32
Khulekani Magubane

Cape Town - Cognition Holdings [JSE:CGN] shareholders say they have threatened the technology company’s board with litigation just to get it to hold an extraordinary general meeting (EGM).

The shareholders group, which owns 12% of the company, said in a statement on Thursday they are at their wits' end in trying to get the board of the technology company to meet and re-appoint an experienced director. The board will hold an extraordinary general meeting in May, said the group.

A person who answered the phone at the company's offices confirmed the meeting would take place, and that the appointment of additional directors would be discussed.  

New board 

The shareholders are pushing for Kagiso Media CEO Mark Harris, businessman Trevor Ahier and technology executive Dennis Lupambo to be included as additional directors at the meeting. 

Ahier is also doubling as the shareholders’ representative. 

He said in a statement the shareholders would rather appoint directors with a fundamental understanding of technology than voting against the re-appointment of these directors.

“I sold equity in my business BMI Research to Cognition in 2014, settled in part with Cognition shares, issued then at R1.90 per share. I subsequently sold the balance of my equity in 2015, settled in Cognition shares at R2.00 per share.

“With the share price languishing around 95 cents per share before our call for the EGM, the devaluation has been significant,” said Ahier.

Cognition Holdings’ services include data collection, research, communication, and marketing. 

The JSE-listed company’s shares increased from 99c in on Monday to R1.14 on Wednesday.

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