Laxey Partners calls for Ritblat to depart by British Land's next annual meeting

Laxey Partners, the leading rebel shareholder in British Land, has demanded that John Ritblat stand down as chairman and chief executive of the company by its next annual general meeting or face a vote to oust him.

The investor submitted two formal resolutions to British Land late on Tuesday, which the company said it would put to its next AGM in 2003. When Mr Ritblat was narrowly re-elected as the company's chairman and chief executive at this year's AGM in July, it was supposed to be for another three-year term. Laxey's proposal means he will face another vote next year.

Colin Kingsnorth, chairman of Laxey, said: "We said we were never going to go away."

Laxey has been highly critical of British Land since buying a stake of up to 3 per cent earlier this year and it put a series of resolutions to the company's 2002 AGM. However, the new proposals are its first direct assault on the position of Mr Ritblat, who has held the two top jobs at the company since 1971.

Laxey's first resolution said: "That, if he shall not have vacated office as a director of the company prior to the moving of this resolution, Mr John Ritblat be and is hereby removed as a director of the company with immediate effect."

Under severe pressure from institutional shareholders, who have long had concerns about corporate governance at British Land, Mr Ritblat told this year's AGM that he would split his roles. However, no timetable was put on the undertaking and Laxey has accused the company of deliberately being vague.

Mr Kingsnorth said it was only fear of losing the re-election vote that forced Mr Ritblat to give the commitment to split the top jobs. Without another vote hanging over his status, he would not give further ground, Mr Kingsnorth said.

"Institutions were able to air their grievances to British Land before the last AGM because the company needed their support [for the vote on Mr Ritblat]. What we're seeking to do is give institutions the leverage to again be able to express their dissatisfaction," he said.

British Land, which held a board meeting yesterday, was said to be stunned by the latest Laxey move. "This beggars belief," said one source. However, the company provided no formal response.

The second resolution from Laxey called on British Land to buy back up to 25 per cent of its shares at a price of 600p or at a price equal to 75 per cent of the net value of its assets. British Land shares closed up 6.5p to 432.5p yesterday.

One analyst said: "This is a wake-up call for Ritblat. Management have until March or April to put their house in order."