Heat turned up on Garrett-Cox

Third shareholder group backs Elliott plans for Alliance board changes

Garrett CoxAlliance Trust chief executive Katherine Garrett-Cox is coming under increased pressure after a third shareholder group backed the rebel shareholder calling for a boardroom shake-up.

Proxy group Institutional Shareholder Services (ISS) is supporting New York hedge fund Elliott Advisers which wants to install three independent directors on the Dundee trust’s board.

ShareSoc and Pirc have already thrown their weight behind Elliott ahead of the vote by 50,000 shareholders on 29 April.

Elliott wants shareholders to back Peter Chambers, Rory Macnamara and Anthony Brooke as new non-executive directors.

Ms Garrett-Cox and chairman Karin Forseke have urged shareholders to reject the plan, claiming the trio are not truly independent. They have speeded up their own search for an independent director and appointed a headhunter to find the right candidate.

There is added concern over Ms Garrett-Cox’s pay which is significantly higher than peers in the investment trust sector. However, the trust issued figures earlier this week showing that it is meeting or beating its benchmark targets.

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