No Amigos for Benamor as shareholders rally behind board

No Amigos for Benamor as shareholders rally behind board

The ongoing dispute between Amigo Holdings plc (Amigo), and its largest shareholder, Richmond Group (Richmond), owned by Amigo founder, James Benamor, came to a conclusion as the results of the much-anticipated general meeting were announced on 17 June 2020.

Benamor had requisitioned the meeting, pushing to replace all of Amigo’s current directors with 2 of his own nominee directors, following a series of online rants about the mismanagement of Amigo claiming it was driving the company to ‘slow motion suicide’.  However, Benamor was not able to exercise his voting rights in respect of his 60.66% shareholding after Amigo filed an injunction preventing him from doing so. Benamor instead had to rely on his follow shareholders and provided an ultimatum, stating he had left his shares with a broker who had been given the irrevocable instruction to sell 1% of his stake in the company every day, until it was reduced to nothing, should the vote not fall in his favour.  However, the remaining shareholders rallied behind the current board with the proposed resolutions failing after receiving over 90% no votes each.

In light of the results, Benamor took to tweeting the following:

‘Shareholders have spoken. They believe in the board’s vision, not mine. It’s not the first time I’ve thought investors were wrong about something, but it is the most painful. Amigo will move forward with shareholders and a board that are united. I genuinely wish them the best’

For more on this story see ‘Fall out with founder causes potential disruptions for Amigo sale’ and ‘Amigo forced to cancel sale as potential acquirer jumps ship’.

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