Boohoo shareholders reject Frasers’ bid to remove co-founder
At a general meeting held yesterday (21 January), 63.17% of shareholders voted against the resolution
Boohoo shareholders have “overwhelmingly” voted against the resolution proposed by Frasers Group that would see founder and group executive vice chair Mahmud Kamani removed as director from the company.
At a general meeting held yesterday (21 January), 63.17% of shareholders voted against the resolution compared to 36.8% who voted in favour of it.
Earlier this month, Boohoo had accused Frasers of attempting to “destabilise” the retailer and “disrupt” the board’s plans to maximise value for shareholders through the business review announced in October.
Frasers’ demand that Kamani be removed from his role comes after the board had appointed Tim Morris as independent non-executive chair, replacing Kamani in the role, at which point he became executive vice chair.
Boohoo reiterated that Kamani is an “integral part” of the leadership team and that his counsel remains “invaluable”, partly because he co-founded the company and had agreed to waive his current salary for the next 12 months.
Morris said: “I would like to thank our shareholders for their overwhelming support, which provides the board with a clear mandate to continue with the work of creating maximum value for all shareholders.
“Today’s outcome follows the rejection in December of the previous Frasers attempt to destabilise Boohoo. On both occasions 99% of investors who are not connected to Frasers backed the board’s position.”
Dan Finley, CEO of Boohoo group, added: “Once again, our shareholders have spoken. We want to put this disruption and distraction behind us. Our focus is on maximising value for all shareholders.”
