Companies

Photo-Me faces call for director sackings

A major shareholder in Photo-Me International is seeking the removal of four of the photobooth operator’s directors.

Principle Capital Investment Trust, a 10% shareholder, also wants shareholders to vote on the immediate cessation of the strategic review announced by the company on 5 June, with the exception of any corporate reorganisation required for a substantial return of capital to shareholders.

Principle argues that there are significant problems with the board’s structure, particularly in the light of the company’s continuing poor performance and the lack of a management succession plan as Serge Crasnianski, chief executive and a 20% shareholder, nears retirement age.

Principle said that the present 11 member board is unwieldy and contains six members who are either executives or – due to their history with the company – are not considered independent for the purposes of the Combined Code. This, it was argued, permits an agenda to be pursued that may not be in the interests of all shareholders.

Two of the directors Principle is seeking to remove are executives, two non-executives.

July 2007