At its recent annual general meeting, shareholders of R&Q approved a resolution to change its name from Randall & Quilter Investment Holdings Ltd. to a new shorter name of R&Q Insurance Holdings Ltd.
The new name suggests a more focused mission and one that is really more aligned with where the companies operations have sat for a number of years.
But, while now having a new name, the company failed to secure shareholder support for resolutions that would have allowed it to raise more capital more easily.
At its recent AGM, R&Q’s Board asked shareholders to vote on 14 resolutions and secured passage for 12 of them.
It’s perhaps notable though that the resolutions securing the lowest numbers of votes were all executive board member related, with three including the reappointment of its Chairman failing to reach a 75% approval rating.
That 75% is important, as it was the threshold of shareholder votes needed to pass the two resolutions that failed to get through, both of which were related to R&Q’s ability to raise more equity capital.
Resolutions 12 and 13, if passed, would have allowed R&Q to raise new equity capital without seeking shareholder approval, but after the challenges the company has faced in recent months it seems investors want to have a say on any future raises.
Both resolutions failed to secure sufficient support, meaning R&Q is now faced with having to turn to its shareholders for support for any further raises, it seems.
R&Q’s executive team and board now need to deliver and demonstrate to shareholders that the business is sustainable at its current capital levels and a profitable entity on a go-forward basis.