Shareholders of third-party litigation funder Juridica voted overwhelmingly yesterday to keep the company going.
When Juridica was listed on AIM nearly six years ago, the directors undertook to convene a shareholders’ meeting within six years to debate a resolution that it be voluntarily wound up, and this was written into the articles of association.
The meeting was held yesterday and 98% of votes cast supported the board’s call for the company to continue.
The board had argued that “there continues to be significant opportunities for the company to invest in a diversified portfolio of new claims that will generate attractive returns for shareholders.
“If passed, the discontinuation resolution would prevent future investment, including future investment in existing claims that may require incremental capital to realise their maximum value.”
In the event the resolution was voted down, the board pledged to put it again to a meeting in another three years.
“The board was pleased to note that approximately 72.98% of Juridica’s outstanding shares voted at the EGM,” a notice issued after the meeting said.
As expected, Juridica has also served notice on Juridica Capital Management to terminate the existing investment management agreement with effect from 31 December. It will be replaced by Fields Capital Management, wholly owned by Richard Fields, who currently heads and is the key shareholder in Juridica Capital Management.
Meanwhile, in other funding news, third-quarter results from Allianz said that while the legal expenses market is “still finding its feet” after April’s reforms, “it is pleasing to report that Allianz Legal Protection has continued to trade strongly over the period”.
Allianz Insurance chief executive John Dye said: “There is evidence of a ‘flight to quality’ as our post-LASPO after-the-event proposition is attracting business partners and law firms with a clear strategy for the new legal environment.
“Our before-the-event legal services scheme has also made a good start, supporting our high net-worth business, Home and Legacy, and we are confident of further developments in this area.”