A group of disgruntled Shanghai International Shanghai Growth Investment shareholders have failed in a bid to join the fund's board after the incumbent directors were reinstated. The shareholders' nominees wanted to dispose of the fund's cash and equity holdings in a bid to enhance its market value. Led by Gabriel Capital Group director Jack Mayer, the disaffected group has about one-third of the company and nominated seven people for election as directors. They complained the fund had slumped substantially since they bought shares at their issue price of US$10.40 in November 1993. The shares closed unchanged yesterday at US$5.05. The shareholder group values cash and equity held by the company at US$6.85 a share - a 35.64 per cent premium to yesterday's closing price. The fund's holdings in unlisted mainland companies was valued at US$3.43 per share. The group failed to attract support from other shareholders, with Mr Mayer's board nomination winning only 34.04 per cent at yesterday's annual general meeting. Six directors put up for re-election by the management were approved by the majority of shareholders. The re-elected board said it would study the investors' proposals and that independent financial adviser Somerley had been hired to recommend how to enhance shareholder value. Mr Mayer said he would await the outcome of the report from Somerley before deciding his next step and warned that more investors would support him in the future if the company failed to enhance shareholder value. Executive director Qu Chengkang said: 'I personally think some of the shareholders' opinions are not in accordance with the long-term development of the company.' Director Tan Song-wee said the fund's performance should improve with the mainland's expected admission to the World Trade Organisation. Somerley managing director Mei Leung said the financial adviser was appointed by the board last week after the group of shareholders made their proposals.