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By Nick Reeve | Published Apr 24, 2012

Insetco spat threatens to hamper its ARM efforts

Chief executive officer Clive Cooke and general counsel and head of structuring Sanjeev Joshi are the sole members of the life settlement specialist’s board, but they clashed earlier this year over the “management and strategy” of Insetco.

In a stock exchange notice, Insetco said: “The inability of the directors to resolve the dispute between them is significant to the future direction and prospects for Insetco.

“As a result, to effect a resolution to the dispute, the company has received two separate notices, each from certain of the company’s shareholders, requiring the board to convene a general meeting of the Shareholders to consider the removal of Mr Cooke and separately Mr Joshi from office as directors of the company.”

Shareholders representing 34.1 per cent of the company’s shares have proposed separate resolutions recommending the removal of either Mr Cooke or Mr Joshi. In each case, the remaining board member has lined up two as yet unnamed replacement directors.

Shareholders in Insetco will meet on May 24 in London to vote on the resolutions.

The development could hamper the company’s latest bid to win the restructuring contract for ARM Asset Backed Securities, the stricken life settlements fund which has been stuck in regulatory limbo for months after it hit liquidity problems last summer.

Insetco failed in a similar bid in January, but has since submitted a second proposal alongside separate bids from Portsmouth-based Life Settlements Consulting and two other unnamed investors.

The ARM fund was distributed in the UK by Catalyst Investment Group, with £76.4m being invested into the fund by UK investors. If no restructuring bid can be agreed, investors could claim compensation from the FSCS if Catalyst - or advisers which sold ARM to clients - are unable to compensate.

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