- Huw Hughes
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Sports Direct boss Mike Ashley is facing mounting opposition ahead of
the company’s annual general meeting on 11 September as a third advisory
firm has recommended that shareholders vote against his reelection.
Institutional Shareholder Services (ISS) joined calls from Pirc and
Glass Lewis’ to oust Ashley as a director amid “significant operational and
governance concerns” at the retail group.
A report by advisory firm Institutional Shareholder Services (ISS), and
seen by the Guardian, said: “ISS’s policy for UK companies provides for
withholding support from directors under extraordinary circumstances for
material failures of governance, stewardship, or risk oversight. Recent
events at Sports Direct appear to indicate that in this case, all three
criteria apply. A vote against the re-election of Mike Ashley is therefore
considered appropriate.”
According to the Guardian, the report also said Sports Direct’s
acquisition of House of Fraser last year “led to concerns about the
company’s viability as a whole”, and it also raised concerns about
financial deals with Ashley’s brother and his daughter’s partner, Michael
Murray.
The report added that Sports Direct had not issued profit guidance for
the year ahead, while highlighting Sports Direct’s acquisition of stakes in
businesses that had
collapsed into administration, such as Debenhams.
The news comes after it was revealed last month that Sports Direct’s
auditor Grant Thornton would resign at the annual meeting on 11
September.
Photo credit: Sports Direct, Facebook
