Investors' lawyers warn BOV property fund directors to hold discussion before votes

The directors of the La Vallette Fund Sicav, whose annual general meeting is to be held tonight, have been warned they will be held personally responsible if they ask shareholders to approve the Sicav’s annual accounts before an open discussion is held.

The letter, sent by advocates Buttigieg, Refalo and Zammit Pace on behalf of aggrieved shareholders, claims the Sicav may request shareholders to cast their votes to approve the directors and their annual accounts, before questions are allowed from the floor.

The directors will be facing questions tonight on how the La Vallette Sicav’s multi-manager property fund, once valued in excess of €84 million, was depleted to €24 million. Over 200 investors have filed numerous judicial protests against BOV, the custodian of the fund, and the Mala Financial Services Authority is awaiting the bank’s reply into an investigation it carried out.

The letter was addressed to the fund’s chairman Salvino Busuttil, directors John Ripard and Joseph Demajo, as well as Bank of Valletta chairman Tonio Depasquale and BOV’s investment arm Valletta Fund Management.

The lawyers warned the directors that they must allow investors and shareholders to have an open discussion on the motions to approve the directors, auditors and the annual accounts before calling for the vote.

“Given the circumstances, this procedure [to vote before discussion] would be oppressive and makes a sham, of he transparency and fairness of treatment that should be meted out to investors,” the lawyers told the fund directors.

“You are therefore being called upon personally to ensure that shareholders are given an adequate opportunity to ask questions and express their views on the proposed resolutions prior to the vote, failing which you shall beheld personally responsible.”