Cantillon: Confusion reigns in Petroceltic egm row

Petroceltic International, the Dublin-headquartered oil explorer that is at loggerheads with its biggest shareholder, could be forgiven for erecting a giant banner outside its offices saying "we told you so".

When Swiss fund Worldview Capital, the 29 per cent stakeholder that is trying to oust management, attempted recently to call Petroceltic's fourth egm of the year, the exasperated Irish company warned it would be "confusing" for shareholders.

And so it has proved. While spinning everyone on its never-ending carousel of shareholders meetings, Worldview even managed to get a bit dizzy itself.

The Swiss fund last week sent a proxy form regarding the proposed October 5th egm to Computershare, Petroceltic’s regular registrar for shareholder meetings. Except, it shouldn’t have sent it to Computershare at all; the proxy should have gone to the registrar Worldview was using, Avenir.

There have been that many shareholder meetings called for Petroceltic this year – it would have been fifth including the annual general meeting – it’s no wonder the Worldview investors had a soft-in-the-head moment.

Relax, guys. Take a breather. Let everyone catch up.

As it happens, the High Court recently sided with Petroceltic when it sought an injunction preventing Worldview's latest egm, which was to have taken place in London.

Mr Justice Henry Abbott’s written judgment, which emerged yesterday, appeared to suggest that, in the age of social media, egms are no longer necessary simply to express opinions contrary to directors and company management.

He wrote: “The modern, ever present and disparate cacophony of media comment, including social media comment, leaves it all the more imperative for the formal records and instruments of a company to provide a clear guide and record of the performance and intentions of the company...”

Keep egms for important stuff, he seems to be saying.

The injunction is not a permanent bar on the egm, of course. Worldview could try and force the matter to a full trial and hope for a different result.