28th Jul 2020 11:32
(Alliance News) - Petropavlovsk PLC on Tuesday said PricewaterhouseCoopers has rejected its proposed appointment as auditors for the Russian miner.
The FTSE 250-listed company said PwC rejected the appointment due to recent significant changes to its board, including the removal of the majority of both independent and executive directors including the chair.
The professional services firm said the changes raise concerns about corporate governance standards, lack of clarity as to the identity of those responsible for governance, and the current challenges facing the board in its ability to function properly
Petropavlovsk said it has been informed that PwC will await the results of the forthcoming general meeting on August 10 and will after that re-assess whether they will accept the appointment.
The search for an auditor commenced after 5% shareholder Everest Alliance Ltd demanded an "independent forensic investigation" into the company's dealings with its directors and managers over the past three years. It also demanded the company probe any dealings with IRC Ltd, which is 31% owned by Petropavlovsk and operates the Kimkano-Sutarsky mine.
In June, Petropavlovsk announced the election of a new chair, chief executive and two directors, but said it believed the voting process at its annual general meeting to appoint the new board members was skewed. Since then, the company has ben embroiled in a fight for control by large stakeholders JSC Uzhuralzoloto Group of Cos, Everest Alliance, Slevin, and Fortiana Holdings.
The company noted that it does not currently have an auditor and this may lead to a delay in the publication of its interim results.
The stock was trading 2.0% higher at 36.98 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
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