On the basis of legal advice received the election result for ring dealing member directors must include the three additional ballot papers received in time.
Linklaters have advised the LME that they have examined all the other votes in the two other categories being voted on, and have reconciled all the numbers cast with those reported, and confirmed that all votes included were properly cast within the terms of the published election process. The outcomes of those votes stand.
The attached LME notice issued today sets out the correct election result for the RDM category of membership.
Speaking today The Lord Bagri CBE said: "I am appalled that administrative errors of the type set out by Linklaters and completely outside the control of the LME should have marred the process to elect new members to the board. The Exchange has been let down badly and I deeply regret the frustration and inconvenience caused to all concerned."
Corrected Result
As a consequence of administrative mistakes by Linklaters, the LME's legal advisers responsible for the receipt, counting and reporting of the votes to the new board of LME Holdings Limited and consequently The London Metal Exchange Limited, the votes recorded for each candidate in the election for shareholder representative (RDM) directors as notified to members in the notice dated 17 November 2000 were incorrect.
Attached is an explanation from Linklaters for the administrative mistakes that arose. The corrected result of the ballot is as follows:
Mr A W Gooch, Credit Lyonnais Rouse Limited. 6; Mr D G Over, E D & F Man International Ltd, 5; Mr L J Scott, The Bank of Nova Scotia, 4; Mr M A Slade, Refco Overseas Ltd, 4; Mr M Overlander, Sucden (UK) Limited. 3; Mr J Tudor, Barclays Bank Plc, 3.
Number of ballot papers issued, 12; Number of ballot papers returned, 11.
Please note that one ballot paper was received by Linklaters after the designated deadline and was thus excluded.
As a consequence of this corrected result:
- Messrs A W Gooch and D G Over have been elected with effect from 1 January 2001, and
- there is a tie for the third shareholder representative (RDM) director vacancy between Messrs L J Scott and M A Slade.
The LME has received a categoric assurance from Linklaters that the administrative mistakes which arose were confined to the election in respect of RDM director candidates. Accordingly the results of the elections in respect of the ABCMs and the ATM directors remain unchanged from that notified in the LME notice to members dated 17 November 2000. Ballot papers in respect of the further election for the third ABCM director will also be sent out today.
Letter From Linklaters
Dear Lord Bagri
RDM Election November 2000
We are writing to explain the circumstances surrounding the counting of the votes in the recent election for RDM representative directors for LME Holdings Limited.
By 12 noon Friday 17 November, the individuals within Linklaters responsible for counting the votes in the election (who, for independence reasons, do not work on the LME account) had received 8 completed ballot papers in the RDM election. As agreed, immediately after 12 noon they notified the LME of the outcome of the election based on those ballot papers and that outcome formed the basis of the LME's notices to members and the press release dated 17 November.
In fact, 3 additional ballot forms in the RDM election had been received by Linklaters prior to the 12 noon deadline but for various reasons the individuals concerned with the counting only became aware of them on the morning of Monday 20 November. One additional ballot form was received out of time and rejected for that reason.
Accordingly, the results of the RDM election notified to the LME on Friday 17 November were incorrect. The true result in accordance with the Articles must include all of those votes properly cast prior to the deadline and so include the 3 additional ballot papers referred to above.
We have examined all votes in the two other categories of representative director which were voted on, and have reconciled all the votes cast with those reported, and confirm that all votes included were properly cast within the terms of the published election process. Accordingly, the outcomes of those votes stand.
We are extremely sorry for this error, for which we accept complete responsibility, and hereby apologise both to you, the board and the LME membership. We are of course content for you to communicate the contents of this letter to the members and to whomsoever you see fit.
