Daejan to fend off board attack
Monday 15 September 1997
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.
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 2 Is this bridge haunted by the ghost of nu rave?
- 3 Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
- 4 The West has it totally wrong on Lee Kuan Yew
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
The West has it totally wrong on Lee Kuan Yew
Revealed: Putin's army of pro-Kremlin bloggers
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...