MSQ MOSQUITO RECEIVES REASONS OF B.C. SUPREME COURT REGARDING 2011 AGM
Mosquito Consolidated Gold Mines Ltd. has received reasons of the British Columbia Supreme Court in the petition filed by International Energy and Mineral Resources Investors (Hong Kong) Co. Ltd. challenging the outcome of the company's annual general meeting held Dec. 16, 2011.
In its reasons, the court held that there were shortcomings with respect to the voting and other procedures adopted at the annual general meeting, principally with respect to the use by the company's proxy solicitation firm of a telephonic voting system. The court held that, while there was no evidence of mala fides or bad faith, the effect of the voting and procedural irregularities was contrary to the dissident's reasonable expectations with respect to the conduct of the annual general meeting. The court ordered that the annual general meeting and the resolutions passed be set aside and that the company reconvene an annual and special meeting, subject to certain conditions.
The company is continuing with its review of the judgement and is seeking advice from its legal and other advisers as to the interpretation and consequences of the judgement, including with respect to an appeal thereof