(Alliance News) - De La Rue PLC has urged shareholders on Wednesday to back Chair Philip Rogerson, after an investor called for his resignation.
At the end of June, banknote and security documents maker De La Rue said Rogerson will retire once he has helped find a new chief executive officer for the company, following former CEO Martin Sutherland's departure.
However, Crystal Amber Fund Ltd has called for Rogerson to leave before that, asking him to step down at the annual general meeting on Thursday next week.
"The De La Rue board firmly believes this precipitous and destabilising Crystal Amber proposal is very clearly not in the best interests of the company, its shareholders as a whole or its wider stakeholders," said De La Rue on Wednesday.
"Accordingly, the board unanimously recommends shareholders vote for all the resolutions at the AGM, including the re-election of the chair."
De L Rue said it has an orderly succession plan in place for the CEO, chair, and senior independent director positions, which would be spoiled if Crystal Amber gets its way.
Senior Independent Director Andy Stevens's departure was announced in June.
The company also said Rogerson will step down if his own replacement is found before a new CEO is hired, and De La Rue said the search for Stevens and Rogerson's replacements is going well.
"The board is committed to the highest standards of governance, and the searches above will be conducted accordingly," said the company.
"If any De La Rue shareholders wish to nominate potential candidates for any of the positions for which a successor is being sought, the board would be delighted to include those potential candidates in the formal process."
De La Rue also noted Crystal Amber had introduced the company to a potential acquirer, which the shareholder claims Rogerson tried to hinder. However, De La Rue said the potential bidders did not respond to an email from Crystal Amber Investment Adviser Richard Bernstein.
De La Rue shares were up 0.3% on Wednesday morning at a price of 293.98 pence each.
De La Rue (DLAR)