MC Mining AGM Unveils Corporate Drama: Triumphs and Turmoil in Shareholder Showdown

  • Mixed AGM Outcomes: MC Mining Limited's AGM revealed victories in director elections but setbacks in key resolutions like remuneration and share issuance.
  • Special Resolutions Rejected: Shareholders rejected a special resolution (15) for a Listing Rule 7.1A mandate and an increase in the NED Fee Pool (16).
  • Investor Relations Challenge: The AGM outcomes underscore the need for MC Mining to engage shareholders, address concerns, and enhance transparency.
By Lethabo Ntsoane

In a pivotal Annual General Meeting (AGM) held on 30 November 2023, MC Mining Limited (formerly Coal of Africa Limited) revealed a blend of successes and setbacks.

Remuneration Report Faces Uphill Battle

The first stumbling block emerged with Resolution 1 – the Adoption of the Remuneration Report. Shareholders cast votes, resulting in a defeat for the nonbinding resolution.

Resolution 1Votes
For21,308,971 (27.47%)
Against56,253,554 (72.53%)

Despite the company’s efforts to secure approval, 72.53% of shareholders rejected the proposed Remuneration Report. The dissenting voices called for a reevaluation of the company’s executive compensation policies.

Director Elections: A Triumph Amidst Challenges

The AGM saw three director elections, with Andrew Mifflin, Yi (Christine) He, and Julian Hoskin facing shareholder scrutiny.

Resolution 2Votes
For170,712,294 (99.89%)
Against185,680 (0.11%)

The re-election of Director Andrew Mifflin garnered overwhelming support, securing 99.89% of the votes. Shareholders expressed confidence in Mifflin’s continued contribution to the company’s growth.

Resolution 3Votes
For170,708,275 (99.89%)
Against189,685 (0.11%)

Similarly, the election of Director Yi (Christine) He achieved a resounding victory with 99.89% of shareholders supporting her appointment.

Resolution 4Votes
For170,717,339 (99.89%)
Against180,635 (0.11%)

Julian Hoskin, too, emerged victorious with 99.89% of votes, securing his position on the board for the upcoming term.

Stalled Shares Issue and Performance Rights Proposals

Despite the triumphs in director elections, the tide turned when it came to issuing new shares and granting performance rights.

Resolution 5Votes
For546,103 (0.32%)
Against170,351,964 (99.68%)

Resolution 5, involving the issuance of shares to Godfrey Gomwe, encountered significant resistance, failing to gain approval from shareholders.

Resolutions 6 to 14, entailing the grant of performance rights to various directors, faced a similar fate, with none proceeding due to shareholder dissent.

Special Resolution Struggles: Listing Rule 7.1A Mandate Rejected

One of the critical moments of the AGM was the proposal of Resolution 15 – a special resolution seeking approval for a Listing Rule 7.1A mandate.

Resolution 15Votes
For38,935,432 (21.97%)
Against138,264,004 (78.03%)

Unfortunately for MC Mining Limited, this special resolution failed to garner sufficient support, receiving only 21.97% of affirmative votes.

NED Fee Pool Increase Faces Opposition

Another noteworthy setback occurred with Resolution 16, involving the increase of the Non-Executive Director (NED) Fee Pool.

Resolution 16Votes
For541,473 (0.40%)
Against135,436,189 (99.60%)

Shareholders overwhelmingly rejected the proposal, expressing dissatisfaction with the suggested increase in the NED Fee Pool.

Implications of AGM Outcomes

The mixed outcomes of the AGM reflect the diverse views among MC Mining Limited shareholders. While the re-elections demonstrated faith in existing directors, concerns over remuneration and certain resolutions suggest areas for improvement.

Challenges in Share Issuance and Performance Rights

The rejection of Resolution 5 to issue shares to Godfrey Gomwe raises questions about the company’s future capital-raising strategies. Shareholders, it seems, were not convinced of the merits of the proposed share issuance.

Furthermore, the refusal to proceed with Resolutions 6 to 14, which involved the grant of performance rights, underscores the need for clearer communication and alignment with shareholder expectations regarding executive incentives.

Special Resolution Setback: Listing Rule 7.1A Mandate

The failure of Resolution 15, a special resolution seeking approval for a Listing Rule 7.1A mandate, implies limitations on the company’s ability to issue new ordinary shares equal to 10% of the issued share capital.

The rejection signals that shareholders are cautious about dilution and demand more transparency and justification for such mandates.

NED Fee Pool Increase: A Call for Fiscal Prudence

The resounding rejection of Resolution 16, proposing an increase in the NED Fee Pool, underscores shareholders’ emphasis on fiscal responsibility. Shareholders appear reluctant to approve additional funds for non-executive directors, signaling a demand for stringent cost controls.

Future Considerations and Investor Relations

MC Mining Limited now faces the task of engaging with shareholders to address concerns and clarify the company’s strategic direction. The AGM outcomes highlight the importance of effective investor relations and transparent communication.

In moving forward, the company may need to reassess its remuneration policies, share issuance strategies, and governance structures to align with shareholder expectations and secure broader support.


The 2023 AGM for MC Mining Limited stands as a pivotal moment, showcasing both victories and challenges. The company must now navigate through the aftermath, working towards rebuilding confidence, refining strategies, and fostering a more collaborative relationship with its shareholders.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: Twitter: @NtsoaneLethabo