Boohoo has accused Frasers Group of attempting to “destabilise” its plans in a letter to shareholders ahead of vote on whether founder Mahmud Kamani be removed as a director.
The fashion giant claimed the Sports Direct owner’s demand was “another tactical move on its part intended to distract the board from the important work of its business review” and that it had “made no compelling case to warrant change, and there are no such compelling reasons”.
The request, first made in November, will be tabled at a general meeting requisitioned by Frasers on 21 January.
It comes after Frasers’ attempt to appoint Mike Ashley and restructuring expert Mike Lennon to Boohoo’s board was thwarted when 63.77% of Boohoo’s shareholders blocked the move last month.
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With the pair set to go head to head once again later this month, Boohoo told shareholders that Kamani is an “integral part of the leadership team”.
“His counsel, guidance and insight to Dan Finley, group chief executive officer, the rest of the board, and the wider business remains invaluable.
“The question for shareholders to consider ahead of voting at the general meeting is not therefore whether Kamani should remain as the company’s chair, but whether he should remain as a director having already stepped down as chair.”
Boohoo said it’s independent proxy adviser Institutional Shareholder Services (ISS) also recommends shareholders to vote against Frasers’ demands.
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