shareholder present and entitled to vote on the resolution has one
vote for every ordinary share of which he, she or it is the holder.
In the case of joint holders of an ordinary share, the vote of the
senior holder (determined by the order of the joint holders’ names
on the register) who votes (or any proxy duly appointed by the
senior holder) shall be accepted to the exclusion of the votes of
the other joint holders.
Amendment to the Articles of Association
Under the laws of England and Wales, and subject to a quorum being
present, the shareholders may amend the articles of association of
the Company by special resolution (i.e., a resolution approved by
the holders of at least 75% of the aggregate voting power of the
outstanding ordinary shares that, being entitled to vote, vote on
the resolution) at a general meeting.
The full text of the special resolution must be included in the
notice of the meeting.
Winding Up
In the event of a voluntary winding up of the Company, the
liquidator may, with the sanction of a special resolution of the
Company and any other sanction required by law, divide among the
shareholders the whole or any part of the assets of the Company and
vest the whole or any part of the assets in trustees upon such
trusts for the benefit of the members as the liquidator, with the
like sanction, will determine. Upon any such winding up, after
payment or provision for payment of the Company’s debts and
liabilities, the holders of ordinary shares (and any other shares
in issue at the relevant time which rank equally with such shares)
will share equally, on a share for share basis, in the Company’s
assets remaining for distribution to the holders of ordinary
shares.
Pre-emptive Rights and New Issues of ordinary shares
Other than for certain permitted issuances of our ordinary shares
and for so long as Exxaro owns a voting interest in Tronox of at
least 7.5%, the Shareholder’s Deed by and between Tronox and
Exxaro, dated March 14, 2019 grants Exxaro preemptive rights
to subscribe for additional ordinary shares to maintain their
relative voting interest in Tronox should any additional ordinary
shares be issued.
Other than for certain permitted issuances of our ordinary shares
and for so long as Cristal Inorganic Chemicals Netherlands
Coöperatief W.A. (“CIC”) owns at least 11,743,750 of our ordinary
shares, the Shareholder’s Agreement by and between, amongst others,
Tronox, Cristal and CIC dated April 10, 2019 grants CIC a
right to subscribe for a proportional number of ordinary
shares.
Under the laws of England and Wales, the Board is, with certain
exceptions, unable to allot and issue securities without being
authorized by the shareholders in a general meeting. In addition,
the laws of England and Wales require that any issuance of equity
securities that are to be paid for wholly in cash must be offered
first to the existing holders of equity securities in proportion to
the respective nominal amounts (i.e., par values) of their holdings
on the same or more favorable terms, unless a special resolution
(i.e., a resolution approved by the holders of at least 75% of the
aggregate voting power of the outstanding ordinary shares that,
being entitled to vote, vote on the resolution) excluding this
requirement has been passed in a general meeting of shareholders
(which authority can be for a maximum of five years, after which a
further shareholder approval would be required to renew the
exclusion). In this context, equity securities generally means
shares other than shares which, with respect to dividends or
capital, carry a right to participate only up to a specified amount
in a distribution, which, in relation to the Company, will include
the ordinary shares and all rights to subscribe for or convert
securities into such shares.
The directors of the Company have been authorized by way of a
shareholder resolution passed at a general meeting of the Company
held on February 25, 2019, for a period of five years, to
allot shares in the Company, or to grant rights to subscribe for or
to convert or exchange any security into shares in the Company, up
to an aggregate nominal amount (i.e., par value) of US$5,000,000
and pre-emption rights in respect of such allotments have also been
excluded.
The laws of England and Wales also prohibit an English company from
issuing shares at a discount to nominal amount (i.e., par value) or
for no consideration. If the shares are issued upon the lapse of
restrictions or the vesting of any restricted stock award or any
other share-based grant underlying any ordinary shares, the nominal
amount (i.e., par value) of the shares must be paid up in
accordance with the laws of England and Wales.