Tiphook's big shareholders plan attack on Montague: Institutions to challenge chief executive's performance

INSTITUTIONAL shareholders and creditor banks will today launch an attack on Robert Montague, Tiphook's founder and chief executive, and other members of the board at what promises to be a fiery annual meeting of the ailing trailer rental group.

At least five big shareholder institutions, four British and one American, will vote against two key resolutions at the meeting in the RAC Club in London.

Most of the rebel votes have already been cast by proxy. More than 66 per cent of Tiphook's shares are held in the US.

The five institutions have voted against the fourth resolution dealing with the issue of new shares. The four British institutions have also voted against accepting the annual report and accounts.

In the unlikely event that a majority voted against accepting the report and accounts the board would be forced to stand down.

The four British institutions have met representatives of the board over the past couple of weeks. They say their concerns about how the company is run have not been alleviated. 'We have had a dialogue with the company but we remain concerned,' one investor said.

Another group of creditor banks plans to question Mr Montague's personal financial situation.

Shareholders have been particularily irritated by Mr Montague's pounds 500,000 bonus payment agreed by the board this year. This payment was in exchange for Mr Montague promising not to launch a rival to the business sold by Tiphook earlier in the year for pounds 734m. Half of the pounds 500,000 has already been paid.

Mr Montague's remuneration package for the year to 31 March rose to pounds 1.34m from pounds 1.17m in 1993.

Institutions are angry that Mr Montague has retained a senior post at Tiphook despite presiding over a dramatic fall in profits and decline in the value of the company's shares.

In contrast, the appointment of Ian Clubb, former finance director of BOC, as chairman of Tiphook, will gain the wholehearted approval of the institutions. He joined the Tiphook board in June.

Tiphook itself says that it is in constant and formal contact with its banks, which have pledged support to it through to May 1998, assuring its financial stability.

A spokesman said: 'It is the shareholders' meeting and we expect them to make their views known. We also expect them to listen to what the directors have to say.'

Tiphook's taxable profits fell from a peak of pounds 69m in 1991 to a loss of pounds 331m last year.

The value of the shares nosedived from 564p in October 1991 to a low of 30p early last month. Yesterday they were unchanged at 38p.

More broadly, shareholders are also worried about compensation payments to three directors who resigned from the group in March this year and one left in August last year.

Roger Braidwood, Eric Goodwin, Christopher Palmer and Nicholas Smith received a total of pounds 2.7m in compensation for loss of office. The payments increased the total cost of remunerating Tiphook directors for the year to 31 March to pounds 6.25m, up from pounds 3.9m in 1993.

Start your day with The Independent, sign up for daily news emails
Life and Style
food + drink
Life and Style
love + sex A new study has revealed the average size - but does that leave men outside the 'normal' range being thought of as 'abnormal'?
Life and Style
Tikka Masala has been overtaken by Jalfrezi as the nation's most popular curry
food + drink
News
UK Border Control
i100
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Christine McCleave: FP&A Analyst

£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...

Recruitment Genius: Sales Executive - OTE £40,000

£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...

Austen Lloyd: Law Costs HOD - Southampton

£50000 - £60000 per annum + Excellent Salary: Austen Lloyd: An outstanding new...

SThree: Recruitment Resourcer

£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...

Day In a Page

Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

Climate change key in Syrian conflict

And it will trigger more war in future
How I outwitted the Gestapo

How I outwitted the Gestapo

My life as a Jew in wartime Berlin
The nation's favourite animal revealed

The nation's favourite animal revealed

Women like cuddly creatures whilst men like creepy-crawlies
Is this the way to get young people to vote?

Getting young people to vote

From #VOTESELFISH to Bite the Ballot
Poldark star Heida Reed: 'I don't think a single bodice gets ripped'

Poldark star Heida Reed

'I don't think a single bodice gets ripped'
The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn