24th Jul 2018 10:28
LONDON (Alliance News) - Social care provider Mears Group PLC said Tuesday a major shareholder has withdrawn its request for Chairman Bob Holt to be ejected from the board and Andy Hogarth appointed in his place.
In early July, Frankfurter Aktienfonds fur Stiftungen - which holds a 8.9% stake in the firm - requisitioned a general meeting in which it proposed Holt be removed from the board.
In Holt's place, Frankfurter proposed Andy Hogarth be appointed a director. It later requested Hogarth also be appointed chairman, which Mears rejected.
The day after the proposal of the meeting Holt announced he would not seek re-election at its annual general meeting. This followed what Chief Executive Officer David Miles described as the "frustrating and insulting" requisition notice by Frankfurter.
Mears now expects a new chairman to be appointed by the end of October. This will follow a "considered, competitive and structured process in accordance with good governance practice". Hogarth will be considered for the post alongside other candidates.
"The board places great value on having regular dialogue with its institutional shareholders, and it welcomes the considered thoughts provided," Mears explained in a statement. "As a result of this approach, the board believes it has an excellent understanding of the views of its shareholders towards its succession plans, and it is confident that this is the best way forward for all Mears shareholders."
Shares in Mears were 1.2% higher at 326.00 pence on Tuesday.
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