Some help with proxy forms from HNW Committee

  • adrienne
  • 10/10/08 13/05/10
  • a depositor
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Posted: Thu, 18/06/2009 - 16:39

PLEASE GIVE YOUR GENERAL PROXY VOTE TO THE HNW - DETAILS BELOW

Good afternoon everyone.

This posting information has been created by Gavin and Stephen and is being made on behalf of the HNW Committee of 9 – Adrienne Liebenberg, Hilde Bartlett, Peter Wakeham, Mira Davidovski, Steve Thomas, Dipika Shah, Alastair Lees, Nigel Smith & Gavin Brake. We operate with a named committee of individuals, and all decisions are taken on a majority voting basis.

In response to questions received from many of you, this posting gives you some ILLUSTRATIVE examples of how to complete the following three forms. Attached is a PDF file based on a made up joint account in the name of John Smith and Jane Smith, who live at a fictitious address, Our House, Our Street, Our Town, UK.

I have discussed these illustrative forms with PWC. These forms are quite frustrating and not that clear. This is because Isle of Man law is quite strict on what the forms must contain, and there is not much flexibility to change them. Hopefully these illustrative examples will help you.

  1. General Proxy Form

This is the easiest one to complete. I have done this to give your General Proxy to Gavin Brake, on behalf of the HNW Group per the last email.

  1. Special Proxy

Again, quite straightforward. In the blank space near the top of the page, I have suggested that John and Jane Smith want to appoint Gavin Brake as proxy to vote against (i), in favour of (ii) and in favour of (iii). This means John and Jane Smith do not want an alternative liquidator to PWC, but they do want a Creditors Committee of Inspection of 7, and they do want Stuart Roberts/Gavin Brake/Axa/S&F Retirement Benefits Scheme to be appointed to the Committee.

You can modify this section to suit your own views on these resolutions. Under a special proxy, I vote according to your instructions.

IMPORTANTLY, we would ask you to insert the following language in this section, "In the event that resolution (iii) below is not passed, I/we support any additional resolution appointing Gavin Brake to the Committee of Inspection".

This will help ensure that the HNW Group receives at least one seat on the Committee. This language has been agreed with PWC.

  1. Proof of Debt

A complicated form, due to the Isle of Man legal requirements.

Box 3 - this means the total value of your claim as at 9 October 2008, not 27 May 2009. The easiest place to get this number from is the statement sent out to all depositors dated 9 October 2008. This number is the total balance shown on your 9 October 2008 statement

Box 4 - attach a copy of the 9 October 2008 statement as proof

Box 5 - this is a bit complicated. For a standard savings account with monthly interest, this "outstanding uncapitalised interest" is the amount credited to you bank account from 1 October 2008 to 9 October 2008. For accounts with longer periods of interest, e.g. a yearly interest account, this might represent interest from many months leading up to 9 October 2008. On your bank statement dated 9 October 2008, this outstanding uncapitalised interest is going to be the final interest payment credited to your account on 9 October 2008. It is the final entry just above the Balance Carried Forward. Insert this number in Box 5.

(For bonds, investment accounts etc, this might need further help from the KSFIOM telephone help line. I only have simple savings accounts with KSFIOM, so have based these examples on such a scenario. However, be warned, this outstanding uncapitalised interest is the number that will be reduced to a 5% maximum level under IOM law, even if, like me, it was accruing at 7% before the bank went into provisional liquidation. Complicated and messy, and you are likely to suffer more if you had yearly interest over monthly interest, but this is the way the law works in the IOM. Before you ask (!), I have pointed out to PWC that they need to talk to HM Revenue & Customs about how UK taxpayers will be taxed on this....they are in discussions already).

Box 6 - just put bank account or savings account with KSFIOM or something similar

Box 7 - only applies if you hold an asset of the bank in your possession

Box 8 - for businesses who supplied goods to KSFIOM but were never paid

Box 9 - will apply to you if you have a mortgage or loan from KSFIOM which you can set off against your deposit

Box 10 - each of us will have our own preference

Box 11 - signatures etc

I hope this helps you navigate these difficult forms !

Joint accounts

The liquidator will pay dividends per account, and therefore, no accounts should be duplicated in any proof of debt forms, and each account should only appear once on a proof of debt form.

To enable this, all individual account holders should submit one proof of debt form including all accounts held. (eg. 'Mr John Smith' etc)

Joint account holders should submit one Proof of Debt form for all the accounts they hold together. (eg. 'Mr John and Mrs Mary Smith').

Additionally, where a depositor holds several joint accounts, each with a different person, (eg 'Mr John and Mrs Mary Smith', 'Mr John Smith & Master Jack Smith' and 'Mr John Smith and Miss Jill Smith') a proof of debt form should be submitted for each distinct grouping of names.

In the example provided, three proof of debt forms should be submitted, one for 'Mr John and Mrs Mary Smith', one for 'Mr John Smith & Master Jack Smith' and one for 'Mr John Smith and Miss Jill Smith', including all accounts held under those names.

Essentially, we require one Proof of debt form for each different combination of account holders.

Combining the examples above, John Smith, would submit be submitting four proof of debts in total; one proof of debt as an individual, and 3 proofs of debt as a joint account holder, one each with his wife, his son and his daughter.


THE HNW COMMITTEE ASKS YOU TO PLEASE GIVE YOUR GENERAL PROXY TO GAVIN BRAKE. This is similar to the Discretionary Proxy given to Gavin Brake, a member of the HNW Committee, for the recent vote on the proposed Scheme of Arrangement. We need your General Proxy in order to be able to vote for or against the various resolutions which have been, and may be, proposed at the First Meeting of Creditors on Tuesday 7 July 2009.

A General Proxy allows the holder to exercise their own discretion on how to vote at the First Meeting of Creditors. As explained above, our current intention is, on balance, to support the appointment of PWC. In addition, we will use this General Proxy to support the nomination of AXA IOM/S&F IOM Limited Retirement Benefits Scheme/Stuart Roberts/Gavin Brake to occupy 4 seats on the Creditors Committee of Inspection of 7. PLEASE NOTE THAT THIS MEANS WE ARE ALSO EXPLICITY SUPPORTING THE APPOINTMENT OF A DAG REPRESENTATIVE, STUART ROBERTS, TO THE CREDITORS COMMITTEE OF INSPECTION. We are doing this because we believe, morally, it is the right course of action. Because of the assignment of voting rights under the DCS explained above, the DAG might not receive many General or Special Proxies. The suggestion by the HNW Committee to PWC to have a resolution appointing 4 out of 7 seats on the Creditors Committee of Inspection has helped DAG & smaller depositors gain representation. It has, of course, also helped improve our own chances of obtaining a seat for a HNW representative.

Our strong preference is for you to give a General Proxy to Gavin Brake. However, you can also consider the alternative of a Special Proxy. This gives specific instructions to the Proxy Holder on how to exercise the vote at the First Meeting of Creditors. If you decide to do this, you may still appoint Gavin Brake as your proxy, and we would ask that you indicate that you are IN FAVOUR of resolution (a) iii (i.e. vote FOR the resolution that Stuart Roberts, Gavin Brake, Axa IOM and S&F IOM Limited Retirements Benefit Scheme be appointed as members of the Creditors Committee of Inspection). You may of course also instruct Gavin Brake to vote for or against the other resolutions which have been, or may be, proposed.

If you decide to appoint Gavin Brake as your proxy, to complete your proxy form, either General or Special, please follow these instructions,

a. General Proxy - Complete the form as follows “I [your full name] of [your address], a creditor of the Company, hereby appoint [Gavin Brake] to be my/our general proxy......” and please date and sign the form as indicated.

b. Special Proxy – Complete the form as follows “I [your full name] of [your address], a creditor of the Company, hereby appoint [Gavin Brake] to be my/our proxy......”. In the gap one quarter down the page, please insert FOR or AGAINST and specify the resolution (i, ii, iii). Then please date and sign the form as indicated.

c. Please send the ORIGINAL form (either General or Special) back to KSFIOM. The letter (on page 2) provides a postal address, an email address and a fax address. However, in ALL CASES you must provide, eventually, a hard copy by post with an original signature. We suggest you also send back your Proof of Debt form at the same time.

d. Please send a PHOTOCOPY of your General or Special Proxy to Adrienne Liebenberg (one of the founder members of the HNW Group and a HNW Committee Member). You can send this by email (adrienne(?)vasat [dot] co [dot] uk), by fax (+44 (0)20 8929 0875, or by post (Adrienne Liebenberg, 12 Ernshaw Place, Putney, London, SW15 2BT, United Kingdom). This is for administrative purposes only. This is so we know how many proxies we hold.

e. Remember the deadline is 12 noon Friday 3 July 2009. We strongly suggest you send back your Proof of Debt forms at the same time.

Our apologies for the long email, but these are important issues. We thank you again for your continued support, and will continue our role to represent the interests of the HNW Depositors in seeking a 100% return of all of our deposits.

Sent by Gavin Brake, on behalf of the HNW Committee

Addendum

  1. A Reminder of Who Are the HNW Committee?

Please find below the brief CVs of the 9 HNW Committee Members. As a brief reminder, and unlike the DAG, we fully disclose our names and backgrounds. We vote by simple majority on all Committee decisions. Given the legal expertise of several of our members, we generally do not need outside legal advice. We have strong political connections with the UK Shadow Cabinet. We have very senior level connections into PWC. We have a “working relationship” with the IOMT. We have visited Iceland to meet with their Finance Ministry and the Chairman of the Resolution Committee & Moratorium Supervisor of the parent company Kaupthing Hf. We have not yet sought funding from group members, although if we decide this would be beneficial in the future, we will seek to do so. We work with the DAG, where possible, but on our own if we judge it to be in the best interests of our supporters – high net worth depositors in KSFIOM.

Hilde Bartlett - UK national, living in Hampshire. £2.6m deposited in KSFIOM, which is the majority of the proceeds on selling her business. Was aiming to retire. All private money, tax paid. Together with a business partner, over many years, Hilde built up an IT company to approximately £16m turnover. During that time Hilde won two "Women in Business Awards" in 1995 (presented by Richard Branson) and 1996 (presented by Kenneth Clarke when he was Chancellor). Hilde was a magistrate for over 8 years and sat on the bench at Aldershot. She currently lectures part time at Surrey University on Entrepreneurship and runs mentoring sessions with young, budding entrepreneurs. Hilde is totally committed to our cause and will put all her energy and skills into getting 100% of our money back.

Gavin Brake (Hopper) - Age 38. UK national, UK tax payer. Currently living in Devon in the UK. Degree from Cambridge University. Professional experience 1993 – 2005: Goldman Sachs, of which 1993 – 1997 Mergers & Acquisitions (in UK & US), 1997 – 2000 Equities (Capital Markets, Structured Trades, Derivatives, UK, Europe & Nordic Regions), 2000 – 2005 Financing Group (Managing Director 2004 and Joint Head of UK Financing Business for Goldman Sachs). Extensive financial and legal experience working with both corporate and Governments. 2005 – present: Devon (change of lifestyle). Owns two farms in Devon, one equestrian and one under development. Chairman of local Parish Council. Trustees of a 640 acre private estate. Also own & help run two limited companies, both of which represent family businesses.

Mira Davidovski - Independent Legal Consultant, (Legal Services industry) February 2008 — Present (1 year 4 months). Partner at Salans (Partnership; Law Practice industry), June 1992 — December 2007 (15 years 7 months). London 2001-2007; New York 2000-2001; Paris 1996-2000; Moscow 1994-1996. CIS & Russian Practice Group; Head of CIS & Russian Banking Practice Group 2002-2007; Chair of Global Legal Opinions Committee 2002-2006; Global Financial Institutions Practice Group facilitator 1998-2001; Client Team Head 2001-2007. Advice to multinational corporate clients, banks, and international financial institutions in finance, securities, telecommunications, media, pharmaceuticals, luxury goods, and natural resource sectors in Russia and the CIS. Education - University of Maryland School of Law, J.D., Law, 1982 — 1985 . Activities and Societies: Joseph Bernstein Prize (for publication); Moot Court Board 1983-1985; Jessup International Moot Court Competition, Best Brief Award (Mid-Atlantic Region) 1984-1985; Maryland Journal of International Law & Trade, Articles Editor. Harvard University , A.B. cum laude, Government, 1977 — 1981

Alistair Lees (BC) - Retired Barrister, Barbados. Lives in Barbados where his full time job is bringing up his twin daughters who are 3. Hold with partner 440,000 GBP in KSFIOM/previously Derbyshire IOM for last 8 years. Trained as a barrister but worked for 16 years as an oil/energy trader, setting up trading/marketing teams in Europe, South America and the USA. Heavily involved in large mergers and acquisitions activity. Down shifted in 2005 to take a lead role in the charity SOS Children's Village (SOS Kinderdorf) with responsibility for the FIFA 2006 World Cup of which SOS was the official charity. Previously one of the founders of the Shareholders United (now MUST) that fought and won the battle against BSkyB to take over Manchester United and fought and lost the Glazer family's similar takeover.

Adrienne Liebenberg (Liebenk) - Global Head of Products - the Linde group, based in UK. Have worked at Afrox / BOC / Linde (the Linde group) since 1996. BSc Engineering University of Witwatersrand, Johannesburg, South Africa. Post-graduate education at Chicago Business School, Wits Business School and Oxford Said. Acting on behalf of her parents who are retired and have their life savings in Kaupthing. Her parents are large retail depositors. Adrienne and Alastair Lees set up the HNW group in February.

Nigel Smith (Frog) - Age, 47. Occupation: Chief Marketing Officer of Hi-Tech European company of 3,800 people (for last 2 years). Qualifications: MSC Software Engineering, BSc Computer Science. Based in Surrey UK. Have experience in large value sales negotiations and has also actively participated in the DAG even prior to its founding and has $600,000 at risk in the bank. Nigel is the questioner in the regular calls with Mike Simpson, LP of the bank and the summaries of the calls can be seen in his blog.

Stephen Thomas (expat) - Qualifications BA Architecture (Oxon) Oxford School of Architecture. Politics, Philosophy and Economics BA (Oxon). Professional 2007-present Director, Hot Data, Project Strategies. 2005-2007 Head of Moscow City Project. 2002-2005 General Director Davis Langdon, Russia. 2001-2002 Project Manager, Samsung Corporation, Russia. 1999-2001 Director, HOK, Moscow Russia. 1995-1999 Director, Hot Data Project Strategies. 1984-1995 Director, Beaton-Thomas Partnership, UK. 1977-1984Regional Manager, Scott, Brownrigg and Turner Middle East.

Dipika Vora - A large private depositor, but her background is as follows: Qualified chartered accountant and been involved in M&A since 1995, previously with Kleinwort Benson (now known as Dresdner Bank) and more recently (2000-2008) with Merrill Lynch (now part of Bank of America). Previously a Director at Merrill Lynch, leaving the firm in early 2008 to work in a related financial role.

Peter Wakeham – Retired. Most recently, late developer entrepreneur. In 1989 founded WILink (now PrecisionIR) a leading investor relations and communications firm, listed on AIM in 2000 and then sold to USA based Private Equity Fund in 2006. At its peak WILink had 4,200 corporate and mutual fund clients across 14 countries in Europe and North America. Formerly blue chip multinational executive. Senior international marketing and general management positions in UK, Sweden, Japan and USA with Mars Inc and PepsiCo Inc. Management consultancy with McKinsey & Company and self employed, working for clients in UK, Denmark, Sweden, Australia and Middle East. Founder member of buy-out team which acquired Bricom, a business services conglomerate, from British and Commonwealth Holdings Plc in 1987. Divisional Director, Business Services Europe for BET Plc until its acquisition by Rentokil-Initial Plc in 1996, after which full-time role with his own company WILink.

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You ask us to give our

  • nivit
  • 19/10/08 31/05/09
  • a depositor
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  • Sat, 20/06/2009 - 09:29

You ask us to give our backing to Gavin Brake so that he may represent our interests on an eventual creditors committee of inspection and you parade the list of qualifications of the HNW committee as a reason for doing so. This begs the question how did such an illustrious and well qualified group get caught with their pants round their ankles in the collapse of KSF IoM and why on earth having seen their judgement was clearly flawed we should put our confidence in them now?


@nivit

  • bellyup
  • 10/10/08 09/01/10
  • a depositor
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  • Mon, 22/06/2009 - 00:49

We are all in the same boat and all made a bad call when we entrusted our money with KSFIOM. otherwise

we would'nt be here .

The HNW committee have been open and honest to put their details out on the forum.

You could say why should we put our confidence in those who many of us know only as nicknames?


Help with forms

  • grandmaparis
  • 13/10/08 30/09/09
  • a depositor
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  • Thu, 18/06/2009 - 22:46

The illustrated examples are a great help. However, I still don't "get" it for box 5. I had 2 one-year bonds with different maturity dates. The statements reads:
Break deal no. ......£x
Break deal no. ......£y
Balance carried forward ......£x + £y (which is the total of the claim I entered in Box 3).
Any ideas? Or should I contact the Bank?


Thanks for giving us this

  • chd
  • 13/10/08 30/09/09
  • a depositor
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  • Thu, 18/06/2009 - 17:28

Thanks for giving us this important info. If we didn't have this web site, and all those people who are acting on our behalf by spending endless hours "repairing" the blunders of IOM, UK PWC etc, I have no idea how we would get through this nightmare.

Let's hope we get the right people on the CC. Please everyone, support Gavin.


Thank You

  • bellyup
  • 10/10/08 09/01/10
  • a depositor
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  • Fri, 19/06/2009 - 07:24

Thank you Adrienne for this very informative post.


DAG and HNW

  • Anonymous
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  • Fri, 19/06/2009 - 00:38

So as to avoid any confusion, I feel I should point out that the HNW group's proxy and creditors' committee nominees are NOT the same as DAG's proxy and nominees. The latter will, I am told, be announced shortly and I would encourage DAG members to support DAG's proxy and nominees.


Proxy votes

  • bobwin
  • 23/12/08 n/a (free)
  • a depositor
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  • Sat, 20/06/2009 - 07:54

If I claim under the DCS, it appears that my vote goes to the Fayle and there is no point in sending a proxy--am I correct?


you could wait

  • bellyup
  • 10/10/08 09/01/10
  • a depositor
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  • Sat, 20/06/2009 - 08:00

You could wait and apply after the creditors meeting although they say ( is this a threat ?) that this may delay the DSC payment)


@bellyup: you could wait

  • IceCrusher
  • 14/10/08 25/10/11
  • a depositor
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  • Sat, 20/06/2009 - 08:15

I expect that there is not enough money to provide a decent level of compensation for the first payment, so by pulling this stunt, they will deter enough depositors so that a bigger payment can be made on a 'first come, first served' basis.


3m=IOM and procrastination?

  • bobwin
  • 23/12/08 n/a (free)
  • a depositor
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  • Sat, 20/06/2009 - 08:41

Ice surely not -- are you getting or did you get cynical like me?

Those nice bean counters have our interests at the forefront of their minds and considering they all seem to be of the male persuasion, that is in their Y fronts.

Am I wrong in thinking that we were told that virtual forms would be OK?

Seems that all the account details and balances and inside leg measurement is ok by wire but THEIR ASSIGNMENT has to be hard copy--well mine will arrive after the 7th July so they won't get my vote for what it is worth.

Tongue in cheek


----

  • follow_the_tao
  • 11/10/08 31/05/09
  • a depositor
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  • Fri, 19/06/2009 - 09:50