The wealth management firm first announced in September that it had formally requested to delist from the ASX.
The proposal was expected to be put forward for shareholder approval at an extraordinary general meeting (EGM) on 24 October 2024 and required 75 per cent of votes to be cast in favour of the delisting. This was then delayed by a week to 1 November.
The result of the EGM today shows that shareholders narrowly voted in favour of the ASX de-listing with a 76 per cent majority vote in the special resolution, according to an ASX announcement. The removal is expected to occur on 27 December 2024, E&P said.
“The company reminds shareholders that if they wish to sell their shares on the ASX, they will need to do so before the company is removed from the official list.”
Explaining the reasons behind the decision in September, the firm said: “The EP1 board has concluded that the benefits of being listed on the ASX are materially outweighed by the potential benefits of delivering the next phase of growth in an unlisted environment.”
It particularly highlighted a “sustained negative impact on the EP1 share price as a result of regulatory proceedings and class action litigation. Notwithstanding the resolution of these issues, the lack of support for the equity market remains”.
However, the Financial Advice Association Australia’s general manager for policy, advocacy and standards Phil Anderson recently argued that the delisting of E&P will not stop the company from coming under scrutiny in the inquiry into Dixon Advisory.
An inquiry into Dixon Advisory was proposed in September, and the Senate economics references committee is scheduled to report by the last sitting day in March.
Anderson said: “Their message seems to be that their share price has gone south, they don’t think it’s got prospects of going up anytime soon, no one likes them and they’ve carried too much of the glare from all this regulatory and class action stuff.
“I don’t think they will avoid scrutiny. I think there will be less scrutiny going forward if they are not required to report to the ASX. But in terms of this parliamentary inquiry, it doesn’t matter if they are listed or not. The Senate economics committee will, as a result of these terms of reference, be having a very close look at the action of Dixon Advisory and therefore its parent company E&P Financial Group.”
The reputations of both Alan Dixon and David Evans should be fully exposed at the Senate Inquiry into Wealth Management Companies. Their greedy business principles and lack of moral ethics should be laid bare for all to see.
Quick, cover your eyes so no one can see you.
How could anyone trust anything E&P / Dixon’s do.
Obviously a move to avoid ASX updates as they are investigated.
E&P / Dixon’s Company, Directors past & present, should be held accountable for the $450 Million in AFCA complaints.
Any investigation of the parent company must look at section 960 / 1J of the corporations act and see if they have fully complied with this
It’s a must that conflicts or perceived conflicts of interacted are recorded at board meetings and the fiduciary duty of directors is to ensure that a plan of action is in place to address the conflict and where required inform/disclose the conflict to any potential impacted parties
Given they have excellent governance oversight frameworks in place I’m sure this would have happened
Or at least I hope they have for their sake !