Shareholders of Donegal Creameries have voted to delist the company from the official list on the Irish Stock Exchange and move to the more flexible Irish Enterprise Exchange (IEX), which is geared to smaller listed businesses.

The move won substantial support from shareholders at an extraordinary general meeting in Letterkenny.

Chairman Lexie Tinney said the regulatory regime for companies on the Iseq was continually becoming more demanding and, therefore, more costly for the company.

Managing director Ian Ireland told shareholders that the business environment was changing and the time was right for Donegal Creameries to move to the IEX.

Richard Wilson of KPMG pointed out there would be lower costs associated with being on the IEX if the company was involved in any acquisitions or disposals.

He pointed out that nine of the 17 companies on the ISEQ with a market capitalisation of less than €100 million had moved to the IEX since it was launched in April.

All the institutional investors on the share register were in favour of the move, shareholders were told, and this was reflected by the proxy votes. A total of 1.54 million proxy votes were in favour, with 24,800 against and 93,000 abstentions.

Around 70 shareholders were in attendance and, on a show of hands, there were only three votes against the proposal.

Under the "fast-tracking" process the firm will be admitted to the IEX from September 30th.

Donegal Creameries has issued three profit warnings in just over a year and, at its agm in July, Mr Ireland told shareholders that the firm would not meet expectations in the current year.

The firm has almost 2,000 shareholders and is primarily involved in the agribusiness sector.

However, it also has a significant property portfolio.