Frustrated Trencor minority shareholders — whose 48% stake in Textainer, once the world’s largest container lessor, has been a long-term underperformer — have resorted to an unused section of the Companies Act to remove mechanisms that protect the directors and management of Textainer. The underperformance of Textainer, Trencor’s major asset, has caused the Trencor share price to slump from a high of R84 in mid-2014 to its close of R33.50 on Friday. The Trencor shareholders want to remove Textainer bylaws that protect the directors and executives from legal action by shareholders and make it difficult for a third party to acquire control of the company without board consent.
They have used section 65 of the Companies Act to lodge resolutions for the coming Trencor annual general meeting. The section, which allows two shareholders to propose resolutions at a shareholders’ meeting, does not require a minimum shareholding. It has been described by corporate lawyer Carl Stein as a...
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