Requisition by members pursuant to section 338 Companies Act 2006 for notice of a resolution as set out below, to be voted on at the 2016 Annual General Meeting of Pearson PLC, and for circulation of a statement in support of that Resolution pursuant to section 314 Companies Act 2006.
To the Company Secretary, Pearson PLC:
We the undersigned, being 100 members holding shares in the Company on which there has been paid up an average sum, per member, of not less than £100 per member,
Hereby require you, in accordance with section 314 of the Companies Act 2006, to give to members of the Company entitled to receive notice of the next Annual General Meeting notice of the following resolution, being a resolution that may properly be moved and is intended to be moved at that meeting, and to circulate to members receiving that notice a copy of the annexed statement with respect to the matters referred to in that resolution:
The Resolution:
THAT the Board of Directors of Pearson PLC immediately conduct a thorough business strategy review of Pearson PLC including education commericalization and its support of high stakes testing and low-fee private schools and to report to shareholders within six months.
Supporting Statement:
Request for a business strategy review of Pearson PLC's current efforts in education commericailization
We believe that Pearson PLC ("Pearson" or the "Company") is suffering a crisis of confidence precipitated by a confused business strategy. The evidence is presented by our reaction to the share price, which at the last Annual General Membership Meeting (AGM) held on 24 April 2015, was trading at approximately $20.68. On 15 December 2015, Pearson stock sold for roughly $10.70.
This represents a drop in price of over 40% in only seven months. This significant drop in share price calls into question the board’s efforts to address the lack of confidence in the Company.
We believe that the current strategic business plan has failed to produce the profits or the potential for profits that investors need. Therefore, it is time that Pearson conducts a business strategy review.
We urge you to vote FOR this resolution.