Johannesburg - Allan Gray on Monday said it has called a shareholders’
meeting at Group Five to attempt to change the board structure.
The meeting is scheduled to take place on July 24.
Chief Investment Officer, Andrew Lapping said they have lost
faith in Group Five’s current board to act in the best interest of all
stakeholders, given their unsatisfactory response following the large number of
resignations from key individuals in recent months.
They have been unable to regain our trust following numerous
meetings and engagements.
Lapping said: “our motivation is not related to Group Five’s
strategy, involving the unbundling of assets, or otherwise”.
Read also: Group Five: Directors to tender resignations
“We simply want a board that is independent with the
relevant skills that will protect and grow value for all stakeholders.”
Lapping said they suggested nominations which will result in
a more transformed board.
“We believe that Mike Upton, as one of our five candidates
nominated, meets the criteria. Mike was recognised for proactively initiating
the investigation into industry collusion.”
He said under Upton
tenure, Group Five was rewarded for this proactive action with the granting of
amnesty and did not have to pay any punitive fines.
The existing board supported Mike Upton when they were
non-executives during his tenure.
“It is our opinion that a new non-executive board will be
able to propel the company forward and ensure Group Five continues to play an
important role in the future of South Africa,” Lapping said.