Vision Capital Corporation, a 5% shareholder, requisitioned the extraordinary general meeting to vote on the effective sale or privatisation of Ireland's largest private residential landlord and the removal and replacement of five directors.
The special resolution to comply with Vision's direction, which needed the support of 75% of shareholders to pass, was backed by 40%, according to proxy votes.
Resolutions to oust outgoing CEO Margaret Sweeney, outgoing chairman Declan Moylan, CFO Brian Fagan, and board members Joan Garahy and Tom Kavanagh, which needed a simple majority to succeed, were also defeated, although close to or over 40% voted in favour of removing each director.
"We're not surprised by the result. There has been a great deal of noise over the past few weeks, not all of which has been pleasant to be honest, but we think the result justifies the board's position," Moylan told reporters after the meeting.
IRES had urged shareholders to reject Vision's "risky and potentially value-destructive approach". It also said last month it would shortly conduct its own strategic review that will include consideration of a potential sale.
Vision, which unsuccessfully called for the removal of four IRES directors at last year's annual general meeting, said the persistent discount in IRES's share price relative to the market value of its assets justified a change of strategy.
Moylan told the meeting IRES was open to working with Vision, while also describing it as "a sorry process". IRES had also offered Vision a board seat but this was not accepted, he added.
"If the vote is close, you should not rejoice. You should listen to shareholders. Your refusal is why we have proceeded to requisition this EGM," Vision CEO Jeffrey Olin earlir told the meeting.
(Reporting by Padraic Halpin; Editing by Jan Harvey and Barbara Lewis)
