#Cayman Islands #George Town #Scully Royalty #Milfam Group

Scully Royalty Maintains Board and Management Stability

In a recent announcement, Scully Royalty Ltd. (NYSE: SRL) has confirmed that its Board of Directors and management team will remain unchanged. This decision follows a significant ruling by the Grand Court of the Cayman Islands, which dismissed attempts by the Milfam Group to wrest control of the company under questionable claims of authority.

The Judgement's Implications

The Grand Court's ruling is a pivotal moment for Scully Royalty. It firmly rejected the Milfam Group's attempts to orchestrate an unauthorized shareholders' meeting, declaring their resolutions invalid and unenforceable. This legal victory ensures that the current governance structure of the company remains intact, providing stability during turbulent times.

The Court highlighted the Milfam Group's failure to provide crucial disclosures regarding the backgrounds and affiliations of its director nominees. Investors were misled about the long-standing business and financial ties between these individuals and the Milfam Group, raising serious concerns about transparency and accountability.

Actions Following the Ruling

In light of the Grand Court's decision, Scully Royalty has taken steps to reconnect with its stakeholders. The company has urged any shareholders, customers, or suppliers approached by the Milfam Group to report these interactions to Scully directly.

Management is committed to acting in the best interest of the company's shareholders, reaffirming its focus on sustainable growth and long-term strategies post-litigation. The ongoing issue with the Milfam Group has not only caused disruptions but also has been detrimental to Scully Royalty's operational timelines, including delays in regulatory filings.

Moving Forward

Additionally, the company is currently dealing with compliance matters with the New York Stock Exchange (NYSE) due to filing delays attributed to the actions of the Milfam Group. This has resulted in a temporary suspension of trading for its shares. However, the Board's resolution is to bring Scully Royalty back into compliance and to resume trading as swiftly as possible.

Scully Royalty's independent auditing firm having resigned amidst these challenges has been another hurdle for the company. Management is actively seeking a new audit partner to ensure compliance and to expedite the filing of its Annual Report on Form 20-F. This report, which is vital for regulatory compliance, is anticipated to be filed shortly, which will enable Scully Royalty to rectify its filing delinquency and address any ramifications from the NYSE.

The Road Ahead

As attention now turns to the company's operational strategies, Scully Royalty remains positive about the future. With stability restored at the Board level, management aims to outline its dividend policies and long-term goals moving forward.

In conclusion, while the recent court ruling marks a significant victory for Scully Royalty, the company is keenly aware of the need to heal from the disruptions caused by the Milfam Group. Investors and stakeholders can anticipate a focused management team that is committed to upholding transparency and fostering growth within Scully Royalty.

For more updates and detailed information about Scully Royalty's operations, visit scullyroyalty.com.