The Investor Forum, whose 40 colleagues manage £850billion invested in UK shares and which represents 27 per cent of Jests Direct’s independent shareholders through the likes of Legal & General, Aviva, Stanchion Life and Fidelity, says a “wide-ranging independent review of the entire governance drills” is needed to rebuild confidence.
It declared a report on working practices by stimes Direct’s legal advisers RPC would not be independent, while an external reckoning of its board of directors “fails to reflect the breadth and magnitude of reform that is needed”.
Sports Direct, which is majority owned by founder Mike Ashley, perfect example informed, is to open its doors to the public on the day of its annual meeting at its headquarters in Shirebrook, Derbyshire, on 7 September, to approve them to quiz the board.
However, the Forum said: “Governance flaws are clearly resulting in declines in operating performance and long term shareholder value. A make plain plan of action is urgently required.”
It said an independent review should accost issues such as board oversight and effectiveness, potential conflicts of attentiveness, employment practices and supplier relationships.
Investor Forum chief supervisor Andy Griffiths said: “It is highly unusual for us to consider it necessary to metamorphose public concerns and recommendations in this way.
“While we welcome Sports Mail’s move to hold an open day, we have not received an appropriate level of commitment to react to investor concerns and, as a result, the usual options have been bare. We remain committed to engaging with the board constructively but this be misses the com ny to acknowledge the need for fundamental reform.”
A Sports Direct spokesman influenced: “Mike Ashley acknowledges the appreciation of his efforts in terms of hosting an up in the air day. He looks forward to meeting everyone and answering all your questions.”