1st Feb 2021 09:31
(Alliance News) - Stock Spirits Group PLC's largest shareholder on Monday said it will vote against re-electing the alcoholic drinks maker's chair at this week's annual general meeting.
Western Gate Private Investments Ltd, which owns a 10% stake in the premium spirits maker, also will abstain on a vote to approve a remuneration report.
It is the second year in a row that Western Gate will vote to oust both Chair David Maloney and Senior Independent Non-Executive Director John Nicolson.
"It is now the third year in a row that Stock Spirits has announced impairments of a significant size," Western Gate said, adding that the impairment for 2020 was 51% of the company's earnings before interest, tax, depreciation and amortisation.
Maloney and Nicolson "no longer demonstrate objective judgement and constructively challenge the board and the executive management".
"Both directors have served on the board since October 2013. The UK Corporate Governance Code states that directors should not serve on the Board for more than 9 years, maximum," Western Gate added.
"Western Gate recognises that these two directors have given many years of service to Stock Spirits, however it is our view that a fresh set of eyes and a reshuffle of the board would add value."
Western Gate added that it will abstain from a vote to approve the Stock Spirits directors' remuneration report, as well as votes to re-elect other non-executive directors.
The Stocks Spirits AGM takes place on Thursday.
Back in February of last year, Western Gate called on the alcoholic drinks maker to pay a special dividend, though only just shy of 14% of voters backed the motion at the subsequent 2020 AGM.
All other motions were passed successfully, including one to re-elect Chair Maloney. This vote was opposed by 15% of Stocks Spirits shareholders. At the same meeting, Nicolson was re-elected with 87% of votes in his favour.
Stock Spirits shares were 2.9% lower at 265.00 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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