Wingate proposing Everest board overthrow

Everest Financial Group’s largest shareholder, the Wingate Group, is seeking to have the current board overthrown and replaced with three new directors — all from Wingate.

Wingate Group managing director Farrel Meltzer said his group is “concerned about 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 after the GFC,” Meltzer said.

Wingate has nominated funds management executives David Kent, Brett Elvish and Franco Dogliotti as potential replacement board members.

If elected, the board would review the business model, “including capital and risk management policy, litigation issues facing the company and the deployment of shareholder funds directly into hedge funds”.

“We acknowledge that the incumbent management maintain a large share holding. However it is important for Wingate to formally distance itself from the actions of the current Board, which we do not endorse,” Meltzer said.

Wingate has requested a shareholder vote on the issue be held at the next Everest annual general meeting.