LONDON (Alliance News) - Housing maintenance contractor Lakehouse PLC on Thursday responded to a recent requisition received from its founder seeking to shake up its board, recommending shareholders vote against the plan.
The requisition, received earlier this month from Slater Investments Ltd and Steve Rawlings, the founder of Lakehouse, who hold more than a 5.0% stake collectively in the business, will seek to remove the three current non-executives on the board.
They are Chairman Chris Geoghegan and non-executive director Jill Ainscough and Johnathan Ford.
The requisition proposes the three are replaced by Rawlings, Ric Piper and Robert Leggett.
Lakehouse called a meeting on Thursday to vote on the proposal. The meeting will take place on April 19.
Lakehouse said the parties behind the requisition have "not provided any information in relation to their strategic vision" for the company. It said an independent board for the company, with no significant shareholder representation "represents the best corporate governance structure" for its shareholders.
Lakehouse added the lack of involvement Rawlings has had in the group since 2012 and track record as a director since then, plus a lack of experience on the boards of listed companies, "does not suggest that he has the necessary skill set to be able to provide a meaningful contribution."
Lakehouse added the requisition has "caused unnecessary disruption" and uncertainty at a time when the board wants to focus on the trading operations of the company.
In February, Lakehouse shares lost half their value after the company said budget cuts by its housing association clients resulted in it winning fewer contracts than it had anticipated in the first half of its financial year to the end of September. This will mean its profit for the year will fall against the financial 2015 results.
It said on Thursday it remains on track to hit its revised guidance for the full year.
"Your board is particularly concerned that the requisitionists have not provided any information in relation to their strategic vision for the company. Their silence on this important matter is especially concerning given they are asking to remove every single existing non-executive director and to replace them with their own candidates," said Chairman Geoghegan.
"The requisitionists' proposals would reduce the level of independence on the board, damage the company's compliance with the UK Corporate Governance Code and result in all the non-executive directors representing only one particular group of Lakehouse shareholders in preference to other Lakehouse shareholders," he added.
"Accordingly your board unanimously recommends voting against the resolutions," Geoghegan concluded.
Lakehouse shares were down 9.5% to 43.91 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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