Lekoil set to defend legal claim over AGM resolutions

The AIM-traded firm was served with a writ of summons in the Grand Court of the Cayman Islands on 6 January, by Olalekan Akinyanmi.

It said the claim challenged the validity of certain resolutions passed at the company's annual general meeting held on 21 December.

“By notice of motion dated 14 February, Mr Akinyanmi has applied to restrain the company from acting on resolutions eight and nine,” Lekoil said on Wednesday.

Resolution eight gave directors the authority to allot shares to settle accrued but unpaid fees to creditors who agreed to take part or all of their fees in relevant securities, and was passed with 53.01% of votes.

The ninth resolution, meanwhile, gave the board the authority to allot shares to lenders to cover outstanding amounts under the convertible facility agreement, and was passed by 52.69% of votes.

Lekoil said the notice of motion was expected to be heard in early- to mid-March.

“The company considers that the claim is entirely without merit, and will defend the claim in the normal manner.”