ARC NYC REIT Adjourns Stockholder Meeting Again
American Realty Capital New York City REIT Inc., a publicly registered non-traded real estate investment trust sponsored by AR Global, adjourned its annual meeting of stockholders until August 2, 2017, according to a filing with the Securities and Exchange Commission.
The meeting was initially scheduled for June 27th and reconvened July 19th.
As previously reported by The DI Wire, shareholders will vote on whether to remove the charter provision that prevents the REIT from retaining any advisor for longer than one year. Affiliated AR Global REITs have sought 20-year management agreements with its external advisor which is controlled by Nicholas Schorsch.
The REIT is also seeking to remove the charter provision that imposes a fiduciary responsibility on the advisor and duty to the company and to the stockholders.
The REIT is attempting to prevent the advisory agreement from being terminated on 60 days’ written notice, limiting access to the books and records of the company, allowing the board to privately sell shares in the company, eliminating the ability of 10 percent of shareholders to call a special meeting and giving the board authority to increase this threshold by 5x, and eliminating the current shareholder majority voting requirement before the board can take specified actions.
Last month, dissident shareholder Cove Partner III LLC – and entity overseen by Michael Asher and John Alba – issued a letter to fellow investors urging that they vote against the proposals, calling it a “basket of outrageous self-serving and entrenchment-minded proposals to amend the company’s charter.” Ashner was instrumental in replacing AR Global as the advisor of New York REIT (NYSE: NYRT) and shaking up its board of directors.
The meeting will be held at 4:00 p.m. at The Core Club in New York City.
