Date set for Dignity shareholders showdown
The battle for control of troubled funeral services firm Dignity will come to a head on 22 April at a General Meeting of the firm’s shareholders in Sutton Coldfield.
The meeting will see stakeholders vote on whether executive Clive Whiley should be replaced by Gary Channon, as proposed by the Phoenix UK Fund, the company’s largest shareholder with around a 29.9% stake in the firm.
In a statement to the London Stock Exchange this morning (March 30), Dignity’s independent directors called the move by Phoenix “wholly unnecessary” at a time when they say the company has been making “significant progress” on a “root and branch” internal review.
The statement added: “The independent directors believe that Clive Whiley has had a galvanising effect on the business, is well-regarded within the business and is respected in the city as an experienced and effective executive chairman. He should therefore be given the time to conclude the strategy review and re-positioning of the company with the continuing help of the group’s executive management team, so that the board can reach properly thought-through conclusions, without being dictated to by a minority shareholder whose motivation appears to be driven primarily by its own objectives.
“Should the resolutions be passed, each of the independent directors has reluctantly reached the conclusion that they would not feel able to fulfil their respective roles on the reconstituted board with Gary Channon at the helm. They would therefore feel compelled to resign, which would have the unfortunate and unwanted effect of further consolidating executive control in the hands of Phoenix.”
The independent directors urge all shareholders to act immediately by voting AGAINST both of the resolutions being proposed at the General Meeting, so as to prevent Phoenix acquiring executive control of the company and thereafter acting in a manner which could be seriously damaging to the company, its shareholders and other stakeholders.”
A statement from Phoenix said: “Phoenix and Gary have a 23 year record of conducting business with integrity and transparency. We have an open and honest way of communicating with investors and Dignity shareholders can expect the same. Following his appointment, Gary intends to write a report to shareholders with an honest appraisal of what he has found and to explain the strategies being pursued.
“Based on our understanding of the business resulting from our involvement with Dignity, we believe that although the company faces many significant challenges as the funeral industry changes, there is great value to be unlocked if the right course is pursued in an expedient manner. We have been involved inside the business since the company’s announcement on 14 December 2020, and are bound by a confidentiality agreement with the company not to share the details.”
