4th Dec 2019 16:07
(Alliance News) - Retirement products and services firm Just Group PLC on Wednesday said it is committed to improving its board's diversity after 28% of shareholders rejected the re-election of its chair during the company's annual general meeting in June.
The Surrey-based firm added it does not plan to raise funds through equity issues in the near future, after it also saw shareholder concern over a motion allowing the company the authority to allot shares.
The motion to re-elect Chair Chris Gibson-Smith was passed after receiving the backing of 72% of shareholders. Just Group said it would "consult and engage" with shareholders to discuss concerns over the motion, however.
After engaging with shareholders, Just Group said the resistance to re-electing Gibson-Smith was due to his role as chair of the company's nomination committee and its lack of appointing female non-executive directors.
The company explained that it identified three potential female candidates for board positions during 2018, but due to uncertainty caused by framework changes by the Prudential Regulation Authority, a UK regulatory body, the candidates pulled out of the running.
Just Group said: "The board and nomination committee remain committed to improving the diversity of the board and have continued to engage actively in identifying potential female non-executive directors."
Also seeing concern from investors was the resolution to renew the authority to allot shares, and a motion to renew the authority to grant additional power to dis-apply pre-emption rights. In June, 21% of shareholders rejected the former and 24% opposed the latter motion.
Just Group added: "The board understands that the primary reason why the company received over 20% of votes against these resolutions was the use of a 'cash-box' placing structure to raise equity capital earlier this year.
"The board has a clear strategy in place to achieve capital self-sufficiency by 2022 and to de-risk the balance sheet. Although it has renewed its authorities for equity issuance, the company has no intention of raising new equity capital over this period and acknowledges shareholder concerns in this area."
Just Group shares were 1.2% higher at 62.95 pence each in London on Wednesday afternoon.
By Eric Cunha; [email protected]
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