The storm surrounding the share trading activities of two David Jones (DJS) directors could yet have ramifications, with the retailer’s chairman mulling an option to replace the two board members, according to The Australian Financial Review.
Last October David Jones directors Leigh Clapham and Steve Vamos bought shares in the retailer just days prior to the release of better-than-expected sales numbers, stirring frustration among investors. That frustration turned to anger upon the release of news that the trades came just one day after a merger approach from rival Myer Holdings.
The Australian Securities and Investments Commission recently concluded an investigation into the trades but failed to find evidence to support claims of insider trading.
As disgruntled shareholders push for improved governance, chairman Peter Mason has reportedly held discussions with institutional investors that have centred on the possible removal of Mr Clapham and Mr Vamos from their posts, according to The Australian Financial Review.
Mr Mason, who gave the directors the all-clear to pursue the trades, is expected to stay on as chair.