Stelios backs down in easyJet row
08.01.09
Sir Stelios Haji-Ioannou appears to have backed down from his demand to appoint two of his own nominees to the board of directors of easyJet. The budget airline's founder and main shareholder has been involved in a public feud with his fellow directors over his concerns about the growth strategy of the airline in the current recession.
In November he increased his voting rights from 15.6% to 26.9% by taking over the rights to his sister's stake in the company. This gave him the ability to appoint at least one and possibly two more directors to the board in addition to himself - although he is still in a legal dispute as to whether he can nominate a chairman and one director or a chairman and two directors.
Sir Stelios also set out very publicly his concerns over accounting policies adopted by the rest of the board, which he argued did not reflect the ‘current commercial realities and the economic climate’. He voiced his disagreement with the management’s takeover of GB Airways and the valuation of aircraft and slots at Gatwick accompanying the deal, and refused to sign off on easyJet's annual accounts.
But some of the planes in question have since been sold at values that justify the figures included in the accounts, and the notice for next month's annual shareholders meeting contains no nominations for new directors. So it would appear that Sir Stelios has withdrawn his demand, after also quickly withdrawing his initial threat to have himself reinstated as chairman, replacing Sir Colin Chandler.
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