10th Apr 2014 06:41
LONDON (Alliance News) - Cairn Energy PLC said Thursday that its Deputy Chief Executive, Dr Mike Watts, and Managing Director and Chief Financial Officer, Jann Brown, will not seek re-election to the board at its AGM in May.
The company said that the decisions come as part of its "long term succession planning," with Watts and Brown to step down at the AGM on May 15, 2014, at which time they will also stand down as Executive Directors of the firm with immediate effect.
The outgoing directors have "agreed, during their notice periods, to continue in senior roles and dedicate their time to seeking to resolve the tax position in India," said Cairn.
James Smith will take over the role of Finance Director and will join the Cairn Board as an Executive Director, with effect from the conclusion of the AGM. He recently joined the company from Rothschild where he was a Director in the Energy & Power team in London.
Detailing the changes, Cairn will have two Executive Directors on its Board - Simon Thomson, Chief Executive and Smith, Finance Director. They will be supported by the Director of Exploration, Richard Heaton and Chief Operating Officer, Paul Mayland.
"The changes announced today offer the best way of organising our business for the future - both in delivering our ongoing balanced growth strategy and in dealing with the situation in India," said Thomson.
Last week the company said it had been contacted by Indian tax authorities to discuss its income tax assessments for its financial year to end-March 2007, and whilst these discussions are taking place, has been instructed to hold its shares in Cairn India Ltd.
Cairn said it will take "whatever steps are necessary" to defend itself over its ongoing tax dispute in India, and reiterated that it had been compliant with tax legislation in every year of its operations in India.
The tax authorities were requesting information regarding transactions undertaken by its subsidiary Cairn UK Holdings Ltd which filed a nil return for 2007 as none of the transactions undertaken by it during that year were chargeable to tax in India.
Shares in Cairn Energy last traded at 169.9 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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