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 Which country would be hardest to invade?
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 4 Floyd Mayweather's mouthguard costs $25,000 - enough to fly to Las Vegas and back 18 times
- 5 Royal baby girl born: Duchess of Cambridge's second child will be a princess thanks to Queen
Which country would be hardest to invade?
Morgan Freeman on the riot-focused coverage of the Baltimore protests: 'F**k the media'
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
The man who filmed the Freddie Gray video has been arrested at gunpoint
Nepal earthquake: Many survivors receiving no help despite relief effort
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
Indonesia executions live: 'Hysterical' families heard prisoners being shot dead by firing squad
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
EU exit would hit UK economy much harder than neighbouring countries, study finds
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...