Amigo shareholders narrowly reject founder’s comeback bid
Shareholders at embattled subprime loans firm Amigo have narrowly voted down a bid to restore founder James Benamor to the company as director.
At today’s general meeting, 57.2 per cent of shareholders voted against a resolution that would have reappointed Benamor, despite the board unanimously recommending the proposal be rejected.
Writing on Twitter after the results were released, Benamor said: “Whilst we didn’t win, shareholders have sent a strong message today. ‘Protect shareholder interests, cut costs, rebuild value fast, or you will be replaced with a capable team.’ “
Shares in the firm plunged 11.9 per cent after the meeting.
Noting the number of shareholders who had voted in favour of bringing back the FTSE 250 firm’s former boss, Amigo’s board said it would ensure an “effective dialogue with shareholders going forward”.
Last month Benamor, who stepped down from the firm after it listed in 2018, launched his comeback bid in a public spat with the firm over its strategy.
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He had also called for the resignation of acting chair Roger Lovering and finance chief Nayan Kisnadwala, both of whom were reelected to the board by a narrow margin today.
Last week chief executive designate Glen Crawford, who had run the firm between 2016 and 2019, stepped down again before he had resumed his position.
The board said that he stepped down due to a “divergence of views with the majority of the board”.
Gary Jennison, who joined Amigo as a director on 10 August, will become chief executive instead.
Benamor’s return as a director was to be the first step in a process that would see him reappointed chief executive of the business, which he set up in 2005.
The firm has been swamped by thousands of complaints from customers who say they should never have been granted a loan.
Amigo is being investigated by the Financial Conduct Authority (FCA) over how it assesses the creditworthiness of customers, and has stopped almost all lending amid the coronavirus pandemic and the probe.