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Authorities need to postpone Mondays Radius AGM.

Saturday 26 September 2009, 9:38AM

By Exposing Unacceptable Financial Activities

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Investors concern that current managers and directors of Radius Properties Ltd are exhibiting a continuing pattern of poor judgement and seriously prejudicing investments is being challenged.

Radius investors have received two alarming letters in the last few days, one from Radius titled “Radius Properties Limited – External Interference” the other titled “I Believe Your Investment in Radius Properties Limited is AT RISK”

A proposal made by concerned shareholders will be voted on at the short-notice AGM on Monday 28 September 2009.

It is reported that HGM Services Ltd, a shareholder in Radius, submitted a written Shareholder Proposal to Radius on 14 August 2009. The directors of Radius are required to circulate this proposal to shareholders prior to the AGM. It is also reported that shareholders, submitted a written Shareholder Proposal to Radius on 9 September 2009.

Nine days later the AGM parcel arrived in shareholders’ letterboxes without the proposal.

Only after correspondence from the shareholders concerned and lawyers, did Radius circulate the proposal. But the serious delays have meant proxies for support of the change have missed the Radius deadline.

The failure to circulate legitimate shareholder proposals to shareholders to consider prior to the AGM and vote on at the AGM, constitutes a breach of both the Companies Act 1993 and the Radius constitution.

The annual report was required to be completed by 31 August 2009. Following conformation from Radius that the report was available investors contacted the Radius’ auditor, PricewaterhouseCoopers, nearing the 2nd week of September. On inquiry investors found the annual report was not available.

Radius sent an undated notice of its AGM to be held on 28 September. The timeframe specified in the notice fails to provide the minimum 20 working days’ notice from the date the annual report became available, as required under the Companies Act 1993 and Radius’ own constitution.

As a result, shareholders have little time to review and analyse the report or organise proxies.

EUFA Coordinator Suzanne Edmonds said from Tauranga today. “EUFA is calling on the Companies office and other appropriate Authorities to step in on Monday and enforce the law.”

Hon Simon Power has promised law enforcement and EUFA is writing to him as Minister of Commerce, to request he give urgent directive to postpone the AGM.

Mrs Edmonds Adds “An investigation into the concerns raised, is better done now than an attempt later to unwind further legal issues that could be created by holding a premature AGM.”