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Petropavlovsk faces stormy AGM over board future
Petropavlovsk faces a stormy investor showdown this week with investors being asked for the second year in a row to back or sack its board.
Shareholders in the Russia-based gold miner will vote at its annual general meeting on motions from two minority investors to oust the current board and reinstate three former directors, including ex-chief executive Pavel Maslovskiy.
One minority investor said he hoped to “stir it up” at Friday’s AGM in London by tabling a series of questions about how the current board was elected. Chairman Ian Ashby and other non-executive directors were installed in a boardroom coup led by Renova, M&G and Sothic Capital last year.
“None of them has ever had questions fired at them,” said the investor.
Renova and M&G no longer own shares in Petropavlovsk, but Gertjan Koomen of Sothic, with a 10.5pc holding, said shareholders should back the board: “Everyone on that board is more qualified than the nominees that have been put forward.”
One City source said the three nominees need to be clearer about their plans for the company. The rebel shareholders, CABS and Slevin, have argued that Dr Maslovskiy is best placed to finish construction of a processing plant. Petropavlovsk’s board has put its faith in new chief executive Roman Deniskin. Proxy advisers ISS and Glass Lewis have told shareholders to back the board, which has accused the rebel investors of operating behind a “veil of secrecy”.
A Petropavlovsk spokeswoman said: “The existing board will create a strong business that delivers lasting value and returns.”