Dimension chief faces NAPF veto

Britain's largest shareholder group is urging members to vote against the re-election of Jeremy Ord, executive chairman of the software group Dimension Data.

The National Association of Pension Funds, whose members control £700m of funds, believes Mr Ord and his company are breaking rules on corporate governance. The NAPF will urge members to vote against him at Dimension Data's annual general meeting on 19 February because he fills the role of both chairman and chief executive.

The NAPF has further concerns about the company's non-executive directors. It believes that only one is truly independent. The others have company share options.

The NAPF is also urging members to vote against amendments to the company's share option scheme for 2000, which would allow up to 5 per cent of unissued shares to be placed in the scheme. The NAPF believes this could dilute ordinary share value.

Dimension Data was "looking at ways of splitting the roles of chairman and chief executive", said a spokesman. The policy on options for non-executive directors had already been altered, he added.