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30 May 2006
Dear Shareholder
I am writing to communicate the result of the AGM/EGM of LME Holdings Ltd held this morning at the LME.
All of the Special Resolutions were passed with overwhelming support, the most significant of which is that ownership and operating rights are now represented in separate categories of shareholdings. This is a major step forward as we continue to ensure that the LME responds satisfactorily to all the regulatory, technological and competitive challenges of the 21st century.
The Ordinary Resolution 4 failed in line with my advice as set out in my letter of 24 May 2006. Ordinary Resolution 5 fell away with the success of Special Resolution 1.
The Board will now resume its focus on maximising the long term economic value of the LME, taking into account the appropriate interests of all those for whom the LME, and its prices, remain central to their activities.
B Share certificates will be dispatched to Shareholders within the next 48 hours.
Yours sincerely,
Donald H Brydon
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Background:
AGM / EGM Background
- At the LME Holdings AGM on 29 March 2006:
- The first and second resolutions (relating to the reappointment and remuneration of the auditors) were unanimously approved.
- A proposal to adjourn the AGM without voting on resolutions 3 and 4 (for the deletion of article 31.13 to remove the requirement for members to hold shares and for authorisation of the directors to allot shares respectively) was also unanimously approved.
- On 8 May 2006, the Exchange issued revised proposed resolutions and communicated the date at which the adjourned AGM would be reconvened and on which therefore, the EGM would also take place. This date was the 30 May 2006.
- On 17 May 2006, the LME Chairman, on behalf of the Board, communicated to its Category 1 and 2 Members, the fact that the Executive Committee had been asked to prepare a plan to recommend the operational strategy and organisational structure required to maximise the long term economic value, to its owners, of the Exchange, while reflecting the appropriate interests of all those for whom the LME, and its prices, remain central to their activities.
- On 30 May 2006, at the reconvened AGM/EGM, all of the Special Resolutions were passed with overwhelming support, the most significant of which is that ownership and operating rights are now represented in separate categories of shareholdings.
About the LME
- The LME is the world’s premier non-ferrous metals market.
- The LME turned over 78 million lots in 2005, which equates to around $4,500 billion dollars.
- Trading at the LME takes place through open outcry in ‘the ring’, through an inter-office telephone market and through LME Select.
- The LME commenced trading in polypropylene and linear low density polyethylene futures contracts on 27 May 2005.
- The LME announced its intention to develop risk management tools for the steel industry in October 2005 and in May 2006 confirmed that it will work with Platts to publish references prices for steel. If the references prices gain acceptance with industry the LME will consider launching futures contracts, settled against the reference prices.
