Troubles mount

CBI postpones annual meeting amid cash crisis

Rain Newton-Smith
Rain Newton-Smith: leading a turnaround plan

The CBI, which is attempting to recover from allegations over staff behaviour, has postponed its annual meeting amid a growing cash crisis.

It said it is “in positive dialogue” to resolve its “short-term cash flow challenges”, believed to be a requirement for about £3m, but has delayed the meeting which was due to take place on Wednesday.

Earlier this year the lobby group was caught up in a series of allegations of sexual harassment and rape against members of its staff.

The claims prompted a number of members, including Aviva, NatWest and Virgin Media, to either cancal or suspend their membership, leaving a big hole in the CBI’s finances.

Director general Tony Danker was replaced by former chief economist Rain Newton-Smith who has led a turnaround strategy.

In a message to its members today, the group said: “At the CBI, we’re serious about our commitment to you, to be more accountable and transparent in our decision-making and work.

“As has been reported, the CBI has experienced some short term cashflow challenges.

“To reassure members, we are in positive dialogue over finalising financing options and are confident that we will be able to resolve this short-term issue and secure the footing of an organisation that remains in a strong medium to long term position.

“But given the significant interest in the CBI right now, we are opening-up and refocusing our previously planned AGM.”

Reports have emerged in recent weeks that the CBI is seeking to tie up its operations with Make UK, the trade body for UK manufacturers.

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