A good old fashioned pub brawl
Mitchells & Butlers (”M&B”) owner of pub chain All Bar One has been airing its dirty linen in public. Rebel shareholders at the company have seen their representatives kicked off the board in what has all the hallmarks of a classic boardroom dispute.
The background behind the despite is that a group of wealthy investors including Joe Lewis, JP Magnier and John McManus have fallen out with the existing independent board of directors. Their rights as shareholders were protected by two directors on the board directly appointed by them and two which the independent directors considered to be in their pockets.
In a brave move, citing improper investor collusion, the independent directors kicked all four of these directors off the board. Given that the rebel investors control at least 40% of the shares and less than 50% of the shareholding typically votes on resolutions the smart money says that the rebels will prevail and ensure either the re-appointment of their directors or the dismissal of the independents.
This means that there must surely be more than meets the eye to this shareholder dispute and it remains to be seen whether the rebel shareholders do press the nuclear button.
Tags: Boardroom Disputes, shareholder dispute, shareholders rights
Boardroom Disputes | Ed Weeks | 
December 17, 2009 7:03 pm
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