Stelios backs down in easyJet spat
08.01.09
Sir Stelios Haji-Ioannou backed down from his demand to appoint two of his own nominees to the board of directors of easyJet. The budget airline's founder and main shareholder has been involved in a public feud with fellow directors over the growth strategy of the airline amid in the current recession.
In November he increased his voting control from 15.6% to 26.9% by taking over the voting rights to his sister's stake in the company. This gave him the right to appoint at least one and possibly two more directors in addition to himself - although he is still in a legal dispute as to whether he can nominate a chairman and one director or a chairman and two directors.
He also set out his concerns over accounting policies adopted by the rest of the board, which he argued did not reflect the ‘current commercial realities and the macro-economic climate’. He also voiced his disagreement with the management’s takeover of GB Airways and the valuation of aircraft and slots at Gatwick airport accompanying the deal, and refused to sign off on easyJet's annual accounts.
But some of the planes in question have since been sold at values that justify the figures included in the accounts, and the notice for next month's annual shareholders meeting contains no nominations for new directors. It would appear that Sir Stelios has withdrawn this demand, after also quickly withdrawing his initial threat to have himself reinstated as chairman replacing Sir Colin Chandler.
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