Boohoo leadership backed by ISS in shareholder dispute with Mike Ashley

In the tussle between Boohoo and Mike Ashley's Frasers Group, Institutional Shareholder Services (ISS), an authoritative proxy voting advisor, has recommended that shareholders stand by Boohoo, urging them to oppose the ousting of the company’s co-founder and vice-chair Mahmud Kamani.

In November, Frasers called for Kamani's removal from Boohoo’s directorship, prompting a general meeting slated for 21 January, as reported by City AM.

Today, ISS aligned with Boohoo’s board members—barring Kamani—in supporting him, signalling his pivotal role within the company. "Kamani is an integral part of the leadership team. His counsel, guidance and insight to Dan Finley, group CEO, the rest of the board, and the wider business remains invaluable," Boohoo's board declared in a stock market announcement today.

This development follows December’s unsuccessful bid by Mike Ashley to secure a position on Boohoo’s board alongside restructuring expert Mike Lennon. At that month’s general assembly in Manchester, more than 63% voted against both appointments.

The row over leadership positions has been part of a protracted feud between the fast-fashion behemoth and its leading individual investor, particularly concerning who should succeed John Lyttle as Boohoo's CEO. Frasers Group, holding brands like House of Fraser and Sports Direct under its umbrella, retains a significant 28% stake in Boohoo.

Ashley's call for Kamani to be ousted came in November, prior to his failed bid to join the board. "The board is of the view that in pursuing this campaign, Frasers is acting solely in its own commercial self-interest," Boohoo's board contended today.

Kamani served as Boohoo's chair until November, succeeded by Tim Morris, and has since taken on the role of executive vice-chair, a move Boohoo claims "reflected the changing needs of the business". "The question for shareholders to consider ahead of voting at the general meeting is not therefore whether Kamani should remain as the company’s chair, but whether he should remain as a director having already stepped down as chair," the firm stated.