(DGO.L) Dragon Oil PLC Buy/Sell

Gandouge
An interesting idea and at first sight seems preferable to doing nothing other than complain about the BoD to like minded investors on the bulletin board but . . . .

First of all active rather than passive investors are likely to already know what is going on.

The more passive investors are unlikely to read the financial times. For example I take an active interest in all of my shares but do not read the FT, investors chronicle or any other financial paper/ magazine. I tend to rely on the internet for financial information.

One fact that may work for us with passive investors is that I am not sure it will be necessary vote against it.
What I believe happens is this. At some date in the near future an offer for their shares will be made to them. If they respond by agreeing to sell at #enoc's price they in effect vote for it. If they fail to respond to the offer they in effect vote against it.

I assume that most small private investors will hold their shares in nominee accounts. I would expect the offer for their shares will be communicated to them by the institution holding their shares to give them the opportunity to accept. Not responding this offer means non acceptance. That is how it has worked in similar situations in the past with my ISA holder.

Unfortunately holding shares in a nominee account does not in itself entitle you to attend, speak at or vote at AGMs and EGMs, In fairness to the companies since your name does not appear on the company register they have no way of contacting you other than through your holder. A good example of this was the disgraceful behaviour of the West Bromwich Buildoing Society to their PIBS holders. They held a special meeting just for PIBS holders, refused to notify them or to allow them to vote if they held PIBS in nominee accounts then railroaded through changes very much to the detriment of PIB holders.

This may be a warning that the convenience and low costs of nominee accounts also have some big disadvantages.

However I believe that the instition holding your nominee account shares in DGO will have to submit the offer to the nominee owner of the shares (that is us) to see if we agree to sell. No response would be viewed as a no.

Anyone care to confirm that this is the situation with their holder? My experience is just with Barclays.