Neil Woodford has refused to comment on Stobart Group’s acrimonious boardroom battle as its shifts to the High Court having previously been vocally opposed to the board’s position despite being a major shareholder.
On Tuesday, Judge Philip Kramer analysed preliminary issues connected with the case before former chief executive Andrew Tinkler appears in the High Court next month to face allegations that he conspired to harm the company’s interests. He has already counter-claimed and argued he was unlawfully removed.
Woodford holds a 19.5% stake in Stobart Group, exceeded only by Invesco Perpetual’s 24.8% stake.
Woodford sided with the ousted chief executive when the boardroom spat was playing out ahead of the company’s July annual general meeting. A spokesperson from Woodford Investment Management said it has no update on Woodford’s previously stated support for Tinkler.
‘A straight talking, honourable man’
Tinkler was initially shown the door in June after he told shareholders and employees that he would be using his shares to vote against the re-election of Iain Ferguson as chairman and install billionaire businessman Peter Day.
The battle continued after Tinkler’s exit as he sought election to the board at the AGM. In support of Tinkler, Woodford wrote to chairman Iain Ferguson in June stating he should step down putting him on the opposite side of the boardroom battle to his former employer Invesco Perpetual, which sided with the board.
Woodford was uncharacteristically vocal in his support of Tinkler. He described him as an “unconventional, straight talking, honourable man”.
However, the resolutions to install both Day and Tinkler never made it before shareholders.
Woodford said his motivation in going public was to ensure the company delivered great returns to all shareholders and also accused Stobart Group of wasting shareholder funds on lawyers that he said had made “unfounded and ludicrous allegations” against him.
In June, profane emails in which Tinkler made sexist comments about the group’s former executive chairwoman Avril Palmer-Baunack were leaked to media. The emails had initially been sent to another major shareholder Allan Jenkinson, who currently holds a 5.5% stake in the business.
