LONDON (Alliance News) - Stobart Group Ltd on Monday urged shareholders to vote against the re-election of former chief executive Andrew Tinker as a director of the company.
Despite the fact that Stobart terminated Tinker's employment in June, last Thursday he proposed himself for re-election.
The company recommended shareholder to vote against the resolution, if proposed.
Tinker's employment was terminated by the group for "breach of contract and breach of fiduciary duty" after its behaviour "jeopardised" the future success of the group, Stobart said.
Tinker also said he was not going to support the re-election of Chairman Iain Ferguson at the company's annual general meeting. He proposed to replace Ferguson with the owner of Edinburgh Mill, Philip Day.
In a letter to shareholder in June, Stobart expressed support for the re-election of Ferguson as chairman, and urged shareholders to vote in favour of his reappointment which would avoid "significant" board resignations.
Yesterday, The Daily Mail reported that former Asda boss Allan Leigthon joined the line as possible new Stobart interim chairman after top fund manager M&G, owner of a 5% stake in Stobart, put him forward to replace Ferguson.
Stobart shares were trading 4.8% higher at 241.05 pence each on Monday.
