BAT's Broughton left fuming after double-fronted attack at AGM

Katherine Griffiths
Wednesday 16 April 2003 00:00 BST
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British American Tobacco yesterday came under heavy fire from a variety of camps at its annual general meeting, from pressure groups attacking its human rights record to corporate governance lobbyists highlighting its breach of rules seen as best practice in the City.

The company had a rocky ride at the AGM, where the pressure group Burma Campaign UK lashed out at its decision to maintain a factory in Burma, whose regime is seen as one of the most oppressive in the world.

John Jackson, the director of Burma Campaign UK, claimed his group had caused Ken Clarke, BAT's deputy chairman and the former Conservative chancellor, "squirming in his Hush Puppies".

"Ken Clarke admitted he is happy to keep doing business with the dictatorship in Burma, regardless of moral questions," Mr Jackson said.

BAT is also being pursued by Ash, the anti-smoking lobby, for its refusal to disclose details of an investigation into the company by the Department of Trade and Industry over its record on minimising the international smuggling of tobacco.

A spokesperson for Ash said: "There was nothing to reflect the gravity of this situation. It is very unsatisfactory that shareholders should not be kept informed."

BAT also found itself in hot water with some shareholder pressure groups. Pirc, the investor advisory service, said it opposed the company's donations to US political parties. It also pointed out that Martin Broughton, BAT's executive chairman, contravened Derek Higgs' recent report on corporate governance because he stepped into the role from being chief executive of the company.

Mr Broughton hit back, telling the AGM that Mr Higgs' project contained some "ridiculous" recommendations.

He said some of the recommendations in the review, which was published in January, are potentially harming rather than improving corporate governance.

"The proposal that a chairman should not chair the nominations committee, as I and most other chairman do, is simply ridiculous," he said.

A BAT spokesperson defended its business record in Burma, saying: "Burma Campaign thinks we should close the factory and sack 500 employees. In our view undermining the Burmese regime is a political objective and should be pursued through political channels."

BAT also pointed out that the DTI itself had stipulated that itsinvestigation into smuggling was confidential.

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