(Alliance News) - Hansteen Holdings PLC on Tuesday defended its decision not to replace its only female board member after a significant shareholder revolt at its June annual general meeting.
Only 63% of shareholders approved the re-election of Chair Melvyn Egglenton as a non-executive director while just 73% approved the annual report on remuneration. Despite these objections, all AGM resolutions were passed.
Having spoken to its major shareholders, Hansteen has determined that the reason behind dissent regarding Egglenton's re-election was "the absence of female representation on the board".
The remuneration opposition, meanwhile, stemmed from the final payment under the founder long term incentive plan.
Hansteen, owner and asset manager of a predominantly UK-based industrial property portfolio, said no further awards will be made under the incentive plan and so the reason for the opposing votes no longer exists.
The company explained its decision not to replace former board member Margaret Young, who stepped down at the end of 2018, as being because the company's size had reduced so sharply to net assets of GBP470.1 million at the end of 2018 versus GBP924.2 million at the end of 2016.
However, the company said the decision not to replace its only female board member "remains under review". The board currently has six members.
"The board would expect that any future additional appointments to the board to reflect the desired expertise and background of potential candidates to complement the skills already on the board while ensuring consideration of ethnicity and gender diversity, as part of the company's recruitment process," said Hansteen.
"The board will continue to engage with shareholders on the size, composition and diversity of the board and will set out further details of any such consultation in the 2019 annual report and accounts and associated documentation," the firm added.
Shares in Hansteen were flat at 102.00 pence in London on Tuesday morning.
By Anna Farley; annafarley@alliancenews.com
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