TORONTO, May 1, 2012 /CNW/ - Labrador Iron Ore Royalty Corporation (TSX: LIF.UN) ("LIORC") announced today that it has amended its by-laws to increase the quorum requirement at meetings of shareholders from 10% to 25%.
The amendment was made in response to a voting recommendation published by ISS in respect of a special resolution to be voted on by LIORC's shareholders at the annual and special meeting to be held on May 16, 2012. The special resolution contemplates an amendment to the articles of LIORC to relax the restrictions on the business of LIORC to facilitate the participation of LIORC in Iron Ore Company of Canada's expansion plans. ISS advised LIORC that while the proposed amendment to LIORC's articles is technical in nature and not objectionable from a governance perspective, ISS would recommend that shareholders vote against the special resolution unless LIORC agreed to increase its quorum requirements to 25% to comply with what ISS believes is a best practice.
LIORC is a Canada corporation resulting from the conversion of Labrador Iron Ore Royalty Income Fund (the "Fund") under an Arrangement effective July 1, 2010. It holds a 15.10% equity interest in Iron Ore Company of Canada ("IOC") directly and through its wholly-owned subsidiary, Hollinger-Hanna Limited, and receives a 7% gross overriding royalty and a 10 cent per tonne commission on all iron ore products produced, sold and shipped by IOC.
Bruce C. Bone
President & Chief Executive Officer