Foxtons faced a shareholder backlash after investors rejected two key board proposals at its annual general meeting (AGM) on 7 May 2026. Almost 39% of votes cast opposed plans to give directors greater flexibility to issue new shares without first offering them to existing shareholders.
The most contentious vote saw 38.55% of shareholders oppose a motion granting directors the power to issue ordinary shares. Separately, 28.65% voted against a proposal enabling political contributions, while 24.96% objected to the company’s final dividend proposal of 0.93p per share.
Critics questioned whether Foxtons’ dividend distribution aligned with broader financial strategy, suggesting the payout might be better directed toward other corporate priorities instead of being a top priority.
The board acknowledged shareholder feedback as it evaluates capital allocation strategies but dismissed objections to the other resolutions as part of broader voting patterns rather than specific concerns about the company’s operations.
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The highest resistance came from proposals to waive shareholders’ pre-emption rights—the usual right to buy new shares first. Resolution 17 drew 38.56% opposition, and Resolution 18 faced 38.64% disapproval, both falling short of approval.
Foxtons said the proposals followed established market guidelines and were consistent with resolutions put forward at its previous AGM. The company argued that the powers would have given directors greater flexibility to respond to changing market conditions.
The company also faced opposition to a resolution authorising political donations, with almost 29% of votes cast against it. Foxtons stressed that it does not make political donations or incur political expenditure, but sought the authority as a precaution due to broad definitions in the Companies Act 2006.
The board has pledged further engagement with shareholders over corporate governance policies and other concerns ahead of its next AGM, following requirements under the UK Corporate Governance Code. This engagement is a result of the feedback received from shareholders, and the board will use it to review and improve its corporate governance policies.
