Andrew Thompson, the independent director of Adcock Ingram who spearheaded the public campaign in favour of a deal with Chileans CFR, yesterday became the first casualty of Bidvest’s victory in the fight for the under-performing pharma group. Led by Bidvest, shareholders  also voted against the proposed remuneration policy for directors and executive management.
According to an official announcement from the company on the Stock Exchange News Service, Thompson’s proposed re-election to the board was defeated in the shareholder vote. He was one of two directors who had been proposed for re-election – a third whose term expired, LE Schönknecht, said he was not available to continue serving. The other director, CD Raphiri, was re-elected.
The result of the vote led to a problem in the audit committee, of which Thompson was a member. The company requires at least three directors to be members of the audit committee. With Thompson being voted off the directorate, there are now only two members.
With Bidvest now holding its desired 34.5% of the Adcock equity, the company’s hostile directorate is going to find it an uphill battle to get any resolution approved without getting the thumbs up from the industrial conglomerate. – AH
