DJs brawl looms over Zahra
The looming protest vote is set to become a critical test in investor confidence for David Jones chairman Peter Mason. Several institutional investors are understood to be planning to vote against the remuneration report as well as the election of director Leigh Clapham at next Friday's annual meeting.
They will be able to ask the board why the Australian Securities and Investments Commission is trawling through the emails of Mr Mason and directors Steve Vamos and Mr Clapham - regarding the directors buying shares in the lead up to the release of the company's quarterly sales - an announcement tagged by the company to the stock exchange as price sensitive.
Mr Vamos, Mr Clapham and Mr Mason argue the quarterly sales data is not price sensitive - but various investors do not agree.
The 6.6 per cent gain in David Jones' share price in response to the release of the sales number supports the shareholders' view.
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Some of David Jones' biggest shareholders are advocating for the reinstatement of outgoing CEO Paul Zahra due to their confidence in his leadership and the desire to maintain stability within the company.
The upcoming annual meeting is crucial as it will serve as a test of investor confidence in the current board, particularly Chairman Peter Mason, amidst calls for leadership changes and scrutiny over recent share dealings.
Investors are planning to vote against the remuneration report as a form of protest against the board's decisions and to express their dissatisfaction with the current management and governance practices.
Shareholders are concerned about the directors' recent share purchases because they occurred just before the release of the company's quarterly sales, which were deemed price sensitive, raising questions about potential insider trading.
ASIC is involved as they are investigating the emails of Chairman Peter Mason and directors Steve Vamos and Leigh Clapham regarding their share purchases prior to the release of price-sensitive sales data.
David Jones directors, including Mr. Vamos, Mr. Clapham, and Mr. Mason, argue that the quarterly sales data is not price sensitive, despite the significant share price increase following its release.
David Jones' share price experienced a 6.6% gain following the release of the quarterly sales data, supporting the shareholders' view that the information was indeed price sensitive.
The protest vote could lead to significant changes in the company's leadership and governance, potentially impacting the strategic direction and investor confidence in David Jones.
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