Bglobal row hots up ahead of shareholder vote
THE boardroom rift is widening at Bglobal where the Darwen company’s chief executive and two non-executives have accused chairman Peter Kennedy of misleading shareholders.
London-based Hawkwood Capital has forced a general meeting this week where it will call for the resignation of Mr Kennedy because it believes the company, which specialises in meter reading software, has underperformed and lacks direction.
The move has been backed by chief executive Tim Jackson-Smith and non-executives, James Newman and Steven Fawkes.
They have issued a response to the market following last week’s statement from Mr Kennedy when he asked not to be forced out and suggested becoming a non-executive director. He also proposed that chief financial officer Nick Kennedy, who is his son, could become interim chief executive.
Mr Jackson-Smith and his non-executive colleagues say Mr Kennedy’s statement did not reflect the true situation at the business and “therefore may mislead shareholders and other stakeholders”.
They also said Mr Kennedy was putting pressure on members of staff to side with him in the dispute. “Mr Kennedy was informed in writing that this was unacceptable behaviour,” said the directors, “that Mr Kennedy ignored our advice only serves to emphasise the need for a change in the culture and style of leadership at the group.”
They added that they were “surprised” that Nick Kennedy was being put forward as interim chief executive as some shareholders have already raised corporate governance concerns over his existing role given that he is the chairman’s son.
Shareholders will meet on Thursday to vote on Peter Kennedy’s future at the firm. Bglobal has recently switched from installing smart meters to selling software and other services to the industry.
