Company News

UPDATE 1-Amigo shareholders reject founder's resolution to return

(Adds shares, Benamor’s response, details on vote, background)

Sept 29 (Reuters) - Amigo Holdings’ shareholders rejected a resolution to appoint founder and former chief executive officer James Benamor, who has been embroiled in a bitter spat with the lender, as a director, the British company said on Tuesday.

Shares in the subprime lender dropped 8% to 10.5 pence after the general meeting, where 57.24% of votes were cast against appointing him as a director.

Benamor had stepped back from running Amigo after it listed in 2018, but has been embroiled in a public row with the company’s management over its strategy since late last year.

"Whilst we didn't win, shareholders have sent a strong message today. Protect shareholder interests, cut costs, rebuild value fast, or you will be replaced with a capable team," he tweeted here after the vote.

Benamor had called for a shareholder vote to oust Chief Financial Officer Nayan Kisnadwala and acting Chairman Roger Lovering, as well as to reinstate himself as CEO.

Other resolutions, including appointing Glen Crawford, Gary Jennison, Rischard Price and Jonathan Roe as directors of the company’s unit Amigo Loans, were also rejected.

Amigo noted that a significant minority of shareholders did not support the board’s recommendation of voting against all the resolutions and said it was committed to ensuring an “effective dialogue” with shareholders going forward.

Reporting by Tanishaa Nadkar in Bengaluru; Editing by Aditya Soni