Daejan to fend off board attack

Daejan Holdings, the property group controlled by the Freshwater family, is prepared to face down criticism over its failure to comply with corporate governance guidelines at its annual meeting later this week.

Corporate governance specialists have criticised the company's board structure, saying it fails to meet key recommendations laid down by the Hampel committee's findings on corporate governance as well as the Cadbury and Greenbury codes.

There are only two executive directors - Benzion Freshwater, who holds the positions of both chairman and managing director, and his brother Solomon. There is only one non-executive director, David Davis, who has been on the board since 1971. There is no nominations committee or remuneration committee.

The Hampel committee, which published its preliminary report last month, recommended that though there should be no fixed rules on the age or length of service of non-executive directors, there was a risk of them becoming less efficient and objective if they remained on the board for an excessive length of time. The reappointment of Mr Davis is due to be voted upon at the annual meeting on Friday.

Daejan's company secretary, Chris Morse, said the board had looked at the corporate governance issue but decided to make no changes "The board has its own views on how to manage its business and the Hampel report seemed to be moving back in that direction."

In the section on corporate governance in the company's annual report, Daejan says it does not think additional non-executive directors would benefit shareholders or that it was necessary to split the roles of chairman and chief executive: "Changes should be made when they are appropriate and in the best interests of the company, rather than for the sake of change itself."

Daejan shares have risen from pounds 12.65 to pounds 15.30 in the past year. However, over the past five years the shares have underperformed the market by 7 per cent. Daejan owns a mixture of property and is capitalised at pounds 274m.

Start your day with The Independent, sign up for daily news emails
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Digital Optimisation Executive - Marketing

£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...

Recruitment Genius: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Day In a Page

Sepp Blatter resignation: The beginning of Fifa's long road to reform?

Does Blatter's departure mean Fifa will automatically clean up its act?

Don't bet on it, says Tom Peck
Charles Kennedy: The baby of the House who grew into a Lib Dem giant

The baby of the House who grew into a Lib Dem giant

Charles Kennedy was consistently a man of the centre-left, dedicated to social justice, but was also a champion of liberty and an opponent of the nanny-state, says Baroness Williams
Syria civil war: The harrowing testament of a five-year-old victim of this endless conflict

The harrowing testament of a five-year-old victim of Syria's endless civil war

Sahar Qanbar lost her mother and brother as civilians and government soldiers fought side by side after being surrounded by brutal Islamist fighters. Robert Fisk visited her
The future of songwriting: How streaming is changing everything we know about making music

The future of songwriting

How streaming is changing everything we know about making music
William Shemin and Henry Johnson: Jewish and black soldiers receive World War I Medal of Honor amid claims of discrimination

Recognition at long last

Jewish and black soldiers who fought in WWI finally receive medals after claims of discrimination
Beating obesity: The new pacemaker which helps over-eaters

Beating obesity

The new pacemaker which helps over-eaters
9 best women's festival waterproofs

Ready for rain: 9 best women's festival waterproofs

These are the macs to keep your denim dry and your hair frizz-free(ish)
Cycling World Hour Record: Nervous Sir Bradley Wiggins ready for pain as he prepares to go distance

Wiggins worried

Nervous Sir Bradley ready for pain as he prepares to attempt cycling's World Hour Record
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific