Financial services firm Wingate Group (Wingate) has called for shareholders of Everest Financial Group (Everest) to oust the firm's board.
Wingate, the largest shareholder in Everest, is pushing for the replacement of the firm's current board in a bid to end the continued "destruction" of shareholder value and future direction of the business under the guidance of the current board.
"In particular, the board has demonstrated poor judgement in regard to remuneration policy, a lack of respect for sound corporate governance, and reliance on a business model that needs to change in the context of a significantly altered environment post the GFC [global financial crisis]," Wingate Group founder and managing director Farrel Meltzer said.
"To maximise the value of shareholders' investment in the company, it is our view that a change of the board is needed with a new board able to guide the business in the best interests of all shareholders."
Meltzer said the new board, if elected, will review the firm's business model including capital and risk management policy, litigation issues facing the company, and the deployment of shareholder funds directly in to hedge funds.
"We are concerned that the board is failing to act in the best interests of all shareholders and believe we will have the support needed to help get the company back on track," he said.
"We acknowledge that incumbent management maintain a large shareholding. However, it is important for Wingate to formally distance itself from the actions of the current board, which we do not endorse. We also want to work with other shareholders to give the company better outcomes than have been achieved by the current board."
Wingate has nominated three new directors: Stockland Capital Partners non-executive director David Kent, Financial Viewpoint director Brett Elvish, and Wingate Group director and head of the Wingate Group Advisory business Franco Dogliotti.
Everest will hold its annual general meeting in late May.
