(Alliance News) - Clinigen Group PLC on Tuesday said it has consulted with its largest institutional shareholder after a motion to re-elect the pharmaceutical services firm's Chair Peter Allen drew the ire of nearly a third of its investors.
In November, 32% of shareholders rejected a proposal to re-elect Allen. Clinigen said it engaged with shareholders both prior and following the vote and noted that there was concern that some of its directors have too many roles elsewhere "to properly fulfil their duties".
Clinigen however, noted that Allen will step down as chair of London-listed Diurnal Group PLC in June.
Clinigen added: "The board specifically recognises that it is best practice for the chair not to be a member of the audit committee. With this in mind, along with the board's commitment to comply with best practice where possible, Allen has relinquished his position as a member of the audit & risk committee with immediate effect. He will continue as chair of the nominations committee and as a member of the remuneration committee."
"The board is confident that Allen discharges his obligations as chair notwithstanding his other obligations and believes that Allen provides effective leadership and manages board meetings extremely well. Further, the board finds the additional insight gained by his participation on other boards to be of enormous benefit."
Clinigen said it will continue to engage with its shareholders.
Shares in the company closed 5.3% higher at 820.00 pence each in London on Tuesday.
By Eric Cunha; ericcunha@alliancenews.com
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