29th Sep 2020 14:55
(Alliance News) - Amigo Holdings PLC on Tuesday said all resolutions proposed by founder and former chief executive James Benamor were voted down by shareholders at a general meeting of the company.
Shares in the company were down 16% at 10.00 pence each in London.
Benamor's investment vehicle Richmond Group had proposed that Benamor be appointed as a director of Amigo and that Chief Financial Officer Nayan Kisnadwala and Interim Chair Roger Lovering be removed as a directors. It also proposed that former chief executive Glen Crawford as well as Non-Executive Directors Gary Jennison, Richard Price and Jonathan Roe be appointed as directors of Amigo Loans.
The company has been embroiled in a dispute with Benamor who made a tilt at retaking the top job at the subprime lender.
In August, Amigo had backed Crawford, urging Benamor not to waste time or money in his bid to return.
Crawford earlier in September, however, decided against taking up the position of chief executive officer after a disagreement with the guarantor loans provider's board. Jennison succeeded Crawford as the company's CEO.
"The board notes that while all the resolutions proposed by Richmond Group Ltd at the general meeting were voted down by the shareholders, a not insignificant minority of shareholders did not support the board's recommendation that shareholders vote against all the resolutions," Amigo said in its general meeting statement on Tuesday.
"The board is committed to its current governance structure and strategy, to delivering value for all shareholders and to ensuring an effective dialogue with shareholders going forward and will continue to engage with shareholders to understand their views."
Separately, in its annual general meeting statement, Amigo said a significant amount of investors voted against the re-election of Chief Financial Officer Kisnadwala and Interim Chair Roger Lovering.
Kisnadwala's re-election proposal saw a 47% opposition from investors, while Lovering's election saw 49% opposition.
Amigo noted the "less than 80% of support" for re-election of Kisnadwala and Lovering and said Lovering has already indicated that he intends to step down once Director Roe has received regulatory approval to take up the chair role.
It backed Kisnadwala saying that he has a "detailed understanding of the company" and "offered steady leadership despite turbulence at the board level".
The company added that it intends to consult with shareholders and institutional investors to "understand and discuss their priorities".
The Bournemouth, England-based hopes to restart lending "on a prudent basis" by the end of 2020.
The company had a "robust" cash collection robust at over 80% of pre-Covid-19 expectations as at August 31.
Amigo reported no material change in complaint volumes, which have remained volatile over August and September. As at the end of August, the company had 41,000 customers on Covid-19 related payment holidays with 9,000 customers having returned to making regular payments and over 3,000 having repaid their loan in full.
By Tapan Panchal; [email protected]
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