Stock Spirits executives survive boardroom coup by activist investor Western Gate
Vodka maker Stock Spirits has emerged unscathed after fending off an audacious boardroom coup mounted by activist investor Western Gate.
Chairman David Maloney and senior independent director John Nicolson had their heads on the block at the company’s annual general meeting (AGM) this morning after the disgruntled shareholder launched an attack on the firm’s leadership.
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But the two executives will live to tell the tale, as shareholders voted down the attempt to oust them. A further resolution to approve the directors’ remuneration report was also passed.
The vote came after Western Gate, owned by Portuguese retail billionaire Luis Amaral, slammed the drinks manufacturer’s board for failing to provide a clear growth strategy.
The investment fund, which holds a 10 per cent stake in Stock Spirits, also criticised the leadership for failing to carry out enough acquisitions and delivering low cash returns to shareholders.
Last month Western Gate urged fellow shareholders to vote against the reappointment of the executives in a bid to overhaul a “culture of group-think”.
But the coup failed after shareholders today voted roughly 80 per cent in favour of keeping Maloney and Nicolson.
Despite the defeat, Western Gate said the vote showed there is significant discontent among investors and reiterated its calls for a change in leadership.
Francisco Santos, executive director of Western Gate, said: “We consider this large shareholder protest vote at today’s AGM against the chairman and senior independent director, for the second year running, as one that the board cannot ignore. We call for the board to accept this mandate for change.”
The unsuccessful revolt is the latest twist in a long-running battle between Stock Spirits and Western Gate. In 2016 the investment firm successful campaigned for the removal of chief executive Chris Heath and the appointment of two independent non-executive directors.
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A spokesperson for Stock Spirits said: “Both David Maloney and John Nicolson continue to have the unanimous support of their colleagues on the board.
“The votes against the re-election of David and John came principally from two investors, and the vast majority of our shareholders are overwhelmingly supportive of the board and its strategy. There is no mandate for change.”