Challenge to Stobart chairman fails to materialise

Stobart Group said its energy business is close to becoming 'increasingly cash generative'

The latest bid to challenge Stobart chairman Iain Ferguson has passed.

North West entrepreneur Philip Day had been proposed as a director of the board and an extraordinary general meeting had been arranged to consider the nomination today.

However, the Carlisle-based group revealed this morning that confirmation of the nomination had not been received by the required date.

In a statement to the Stock Exchange today Stobart said: “On 5 June 2018, the company announced that it had received a requisition from three shareholders holding in excess of 33 per cent of the company’s voting capital to nominate Philip Day to be elected as a director of the company.

“Those shareholders comprised Andrew Tinkler (former executive director), funds acting through Woodford Investment Management Limited and Allan Jenkinson.”

It added: “On 25 June 2018, the company announced the posting of a circular to shareholders convening an extraordinary general meeting to be held at 11am on 18 July 2018 (the “EGM”), and at which a resolution to elect Mr Day would be proposed.”

The company’s Articles of Incorporation require a potential director to provide confirmation as to his willingness to be elected as a director no later than seven clear days in advance of the meeting to consider his election.

Stobart said: “Mr Day failed to provide such confirmation on or before 10 July 2018, and therefore Mr Day is not eligible to be elected as a director at the EGM.

“Accordingly, the sole resolution proposed at the EGM is now ineffective.

“Given there is now no business to conduct at the EGM, shareholders need take no further action irrespective of whether they have already submitted a proxy vote.”

Former chief executive Andrew Tinkler was backing Mr Day, owner of Peacocks and Edinburgh Woollen Mill, to replace Mr Ferguson on the board in a public spat that exposed boardroom turmoil.

Their bid to oust Mr Ferguson at Stobart’s annual general meeting on July 6, on Guernsey, was narrowly voted down.

Following the AGM the board pledged to restructure the board, including plans for Mr Ferguson to step down before next year’s AGM, which was followed last week by a call from Mr Tinkler to indefinitely postpone today’s EGM, saying the board’s plans were “a step in the right direction”.

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