FIG.PR.A Meeting Does Not Get Quorum

Faircourt has announced:

The special meeting of unitholders of Faircourt Split Trust (“FCS”) was held today at which the unitholders approved various amendments to the FCS declaration of trust (the “FCS Proposals”), as described in the joint management information circular dated August 13, 2010 (the “Circular”). The FCS Proposals remain subject to approval by the preferred securityholders of FCS.

In addition the announced special meetings of unitholders and preferred securityholders of FIG and of preferred securityholders of FCS, were convened but adjourned because a quorum was not present. The special meetings for the Funds were adjourned to September 20, 2010 in the case of the meetings of preferred securityholders of FIG and FCS, and to September 27, 2010 in the case of the meeting of unitholders of FIG. Each special meeting will be at the offices of Stikeman Elliott LLP, 199 Bay Street, 53rd Floor, Toronto, Ontario, M5L 1B9 at 10:00 a.m. on the applicable date. As described in the Circular, the deadline for submitting proxies for the adjourned special meetings is Friday September 17, 2010 at 10:00 a.m., in the case of FIG and FCS preferred securityholders and Friday September 24, 2010 at 10:00 a.m., in the case of FIG unitholders.

The FCS Proposals were approved in contemplation of the proposed merger (the “Merger Proposal”) of Faircourt Income & Growth Split Trust (“FIG” and together with FCS, the “Funds”) into FCS to create a single trust, with FCS as the continuing trust (the “Continuing Trust”). The Merger Proposal, as described in the Circular, remains subject to approval by the unitholders and preferred securityholders of FIG.

The FCS Proposals are part of a response to expected changes in the taxation of income funds. As a result of these changes, there are now an insufficient number of “income funds” for FCS to continue to meet its investment restrictions. Consequently, if the FCS Proposals are approved by preferred securityholders, the investment mandate of the Continuing Trust will be expanded to remedy this situation and the Continuing Trust will be able to invest in a broader range of securities and adjust its portfolio in the future as and when required to respond to market movements.

Plans for he meeting have been reported on PrefBlog. There should be a prize for interested investors who can find the Management Information Circular on the Faircourt site – I wouldn’t win, I’ll tell you that much. It’s available on SEDAR, filing date 2010-8-18.

I recommend that FIG.PR.A holders vote in favour of the merger – it will be slightly accretive to Asset Coverage.

One Response to “FIG.PR.A Meeting Does Not Get Quorum”

  1. […] was last mentioned on PrefBlog when the first attempt to approve the merger did not get quorum. FIG.PR.A is tracked by HIMIPref™ but is relegated to the Scraps Index on credit […]

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