TORONTO (miningweekly.com) – In its attempt to shake up the board of diversified miner Sherritt International, Halifax-based investment firm Clarke Inc on Thursday named its three nominees for election to the Sherritt board at the Toronto-based mining company’s annual and special meeting on May 6.
Under the leadership of Clarke president and CEO George Armoyan, a group of concerned shareholders nominated Armoyan, resource advisory and investment business Astor Group CEO Ashwath Mehra and 30-year accounting and international business veteran and Municipal Group of Companies VP of finance and CFO David Wood for election to the Sherritt board.
In a statement published on Thursday, the concerned shareholders sought to ensure that Sherritt’s board acted on behalf of all shareholders and increased its focus on creating shareholder value.
“Directors should share in the risks and the rewards alongside the shareholders of Sherritt. We believe a primary cause of Sherritt’s dismal performance is that the board has no incentive to improve the return to shareholders. “The directors are not significant investors but are exceptionally well paid, no matter how the company or its shares perform. Sherritt belongs to its shareholders. Together, we can regain the value lost,” Armoyan said.
The concerned shareholders said that they control about 5.3% of Sherritt shares, and that their nominees had decades of international metals experience, as well as expertise in mine site and infrastructure development and financing.
The dissenting shareholders believed their nominees would also be better shareholder representatives, claiming that Sherritt’s current board and management only owned about 0.25% of the company’s common shares.
In March, the concerned shareholders had submitted four proposals to address what they saw as excessive and inappropriate compensation practises at Sherritt.
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