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Sacking a fellow director – GPG

  • June 29th, 2010

Interesting to learn that GPG directors can enforce boardroom solidarity by sacking a fellow director, or so Sir Ron Brierley says in the 28 June statement announcing Tony Gibbs' sacking:

"Following careful consideration of these matters, the Board has today resolved, in accordance with Article 97(e), to terminate the appointment of Mr Gibbs as an Executive Director and has further resolved, that his office as a Director of Guinness Peat Group plc be vacated. Consequently, Mr Gibbs has ceased to be a Director of the company."

However merited Gibbs' revolt, the way in which he delivered the news of his disagreement with the Board decisions breached strong conventions. In New Zealand his fellow directors would have at least asked him to resign. But I'm not aware of public companies here which would allow directors to do the sacking. It is for shareholders to sack a steward they have appointed  to govern their company.

Still, GPG has always presented as if it was the directors' company and we the other shareholders were invited along for the ride. For a long while that worked well. Once they've fallen to fighting, we shall see.

Solidarity conventions are based on sound intuitions. Searching argument internally, then external solidarity around the majority decision pays off more reliably than the alternatives, despite the risks of group-think and the passionate rightness of dissent on some occasions.


  • Bryan Wilson
  • June 30th, 2010
  • 12:07 pm

Is the case against the Feltex directors confusing the roles of directors and executive in a similar way?  

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