Investor issues alert over failure of corporate governance at Mitchells & Butlers

22 January 2010 by
Investor issues alert over failure of corporate governance at Mitchells & Butlers

A major investor in Mitchells & Butlers has issued an alert over a failure of corporate governance at the company, as hopes of a reconciliation and an end to its boardroom crisis faded.

The Association of British Insurers (ABI), which represents around 20% of shareholders at the company, said that the company's board and Bahamas-based billionaire Joe Lewis had been unable to reach a compromise.

The news led to the ABI issuing a ‘red top' alert to shareholders. The Financial Times reported that the alert was the "strongest possible" warning about governance concerns.

M&B said that it remained willing to reach an agreement with shareholders.

Piedmont, Joe Lewis' investment vehicle, said it would seek a review of the company and a new plan within 60 days if its resolutions were approved.

It has been pushing for the removal of chairman Simon Laffin, and the installation of four of its nominees as directors.

A total of 23 MPs have now signed an early day motion, highlighting "great concern" that the interests of 60,000 small shareholders in M&B were being threatened by "a small group of friends and minority shareholders domiciled outside the UK".

Investor and MPs wade into Mitchells & Butlers boardroom battle >>
Mitchells & Butlers fined £20,000 for food safety breaches >>

Takeover Panel finds no evidence of bid to seize control by M&B investors >>

By Neil Gerrard

E-mail your comments to Neil Gerrard here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs
Looking for a new job? Find your next pub job here with Caterersearch.com jobs

Blogs on Caterersearch.com](http://www.caterersearch.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking