Boohoo gets further proxy backing in boardroom battle

Building on prior support from the Institutional Shareholder Services (ISS), Boohoo has now received backing from an independent proxy advisor in regards to its upcoming General Meeting, in which an anticipated boardroom battle is expected to ensue.

Glass Lewis has offered its recommendation that Boohoo shareholders are to vote against resolutions due to be put on the table at the meeting on December 20, during which Frasers Group will seek board representation.

In its recommendation, Glass Lewis said “appointing a director with significant historical ties to Frasers, without comprehensive agreement in place to mitigate potential conflicts of interest, could raise further concerns among investors”.

The firm further raised concerns regarding Frasers’ “refusal to provide the necessary governance commitments”, which brings about questions regarding the group’s “commitment to addressing the governance and conflict-of-interest concerns highlighted by the company and may suggest that their intentions are not fully aligned with the interests of the company’s broader shareholder base”.

As such, Glass Lewis recommended against the appointment of Mike Ashley and Mike Lennon, who Frasers has put forward for proposed representation, stating that “shareholders would not be well served” if they are elected.

Boohoo once again underlined its “credible plan to unlock and maximise value” for shareholders through its Business Review, overseen by CEO, Dan Finley, which it said Frasers “appears intent on disrupting”.

In a statement, Boohoo group chairman, Tim Morris, said the company welcomed Glass Lewis’ recommendations, adding the firm’s analysis underscores “concerns regarding the significant risks posed by appointing individuals with strong historical ties to Frasers without adequate governance commitments in place”.