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The LME is the world's leading non-ferrous metals exchange for futures and traded options. Its turnover is in excess of $2,000 billion each year. Currently it is a company limited by guarantee, with a number of different categories of membership.
Voting took place at an Extraordinary General Meeting today in the City of London. The restructuring proposal recommended by the board was supported unanimously. A minimum 75% majority of those voting was needed for the proposal to be approved and adopted.
As part of the proposal it was agreed that The Lord Bagri, CBE, would be chairman of LME Holdings Limited and the LME Limited, until 31 December 2002.
Commenting on the outcome of the vote today The Lord Bagri, CBE, chairman of the Exchange said: "The LME has taken today one of the most significant decisions in its long history. This is a bold move and it is a great achievement to have gained the positive agreement of a membership with diverse interests to change of this kind. I and my board colleagues have the greatest possible respect for our members who have agreed to changes for the overall benefit of the Exchange and the markets it serves, especially when it alters the direct balance of enshrined rights for some.
"I am grateful to the board for their rigour in this transparent process which involved much consultation before the final proposals were put to the members for their consideration and judgement today. Similarly, on behalf of the Exchange, we are grateful to the practitioners who spent many hours identifying key issues and making recommendations which are at the heart of the new structure we can now set about building. We also very much appreciate the support we have received from the global metals trade and industry.
"Today's vote marks the start of a process of change and a new way for the Exchange to serve the market and its members. The quality of our service and the standards we bring to the market will continue to be our highest priority. This will not change.
"This is a particularly exciting time at the LME. The technological revolution and the speed of change in business practice has meant that the LME has to reinforce and build on its great success to take on the new challenges in the market place and to explore additional avenues of enterprise. The LME has been a success for more than 120 years and the work that has been completed today has set it on a course to continue that proud record."
