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| Sports Direct faces shareholder revolt at annual meeting | Sports Direct faces shareholder revolt at annual meeting |
| (35 minutes later) | |
| Sports Direct faces a shareholder revolt at its annual meeting with investors dissatisfied despite the firm's pledge to improve staff working conditions. | Sports Direct faces a shareholder revolt at its annual meeting with investors dissatisfied despite the firm's pledge to improve staff working conditions. |
| Investors believe founder Mike Ashley, who owns 55% of the firm, wields too much control. | Investors believe founder Mike Ashley, who owns 55% of the firm, wields too much control. |
| The firm has said its chairman Keith Hellawell will stay despite calls for his resignation. | The firm has said its chairman Keith Hellawell will stay despite calls for his resignation. |
| The meeting comes after a critical report by the chain's lawyers. | The meeting comes after a critical report by the chain's lawyers. |
| Sports Direct commissioned its legal advisers Reynolds Porter Chamberlain to carry out the review after MPs accused the firm of not treating staff like humans, with working practices closer to "that of a Victorian workhouse than that of a modern high street retailer". | Sports Direct commissioned its legal advisers Reynolds Porter Chamberlain to carry out the review after MPs accused the firm of not treating staff like humans, with working practices closer to "that of a Victorian workhouse than that of a modern high street retailer". |
| Mr Hellawell offered to step down over the weekend due to the shortcomings highlighted in the report, but the board, including Mike Ashley, asked him to stay, the company said. | |
| Sports Direct to put worker on the board | Sports Direct to put worker on the board |
| Dominic O'Connell: Sports Direct review | Dominic O'Connell: Sports Direct review |
| View from Sports Direct workers | View from Sports Direct workers |
| Under scrutiny | Under scrutiny |
| Last year an investigation by the Guardian newspaper revealed that staff at its Shirebook warehouse were subject to lengthy security searches which, in some cases, resulted in their pay falling below the legal minimum wage. | Last year an investigation by the Guardian newspaper revealed that staff at its Shirebook warehouse were subject to lengthy security searches which, in some cases, resulted in their pay falling below the legal minimum wage. |
| And a BBC investigation found ambulances were called out to Sports Direct's complex at Shirebrook, in Derbyshire, 76 times in two years. | And a BBC investigation found ambulances were called out to Sports Direct's complex at Shirebrook, in Derbyshire, 76 times in two years. |
| In Tuesday's report, Sports Direct pledged to abolish zero-hours contracts for its directly employed, casual retail staff, and make sure all staff were paid above the national minimum wage. | In Tuesday's report, Sports Direct pledged to abolish zero-hours contracts for its directly employed, casual retail staff, and make sure all staff were paid above the national minimum wage. |
| Later, the firm said it would put a workers' representative on its board to "give workers a voice at the highest level and to help ensure that all staff are treated with dignity and respect". | Later, the firm said it would put a workers' representative on its board to "give workers a voice at the highest level and to help ensure that all staff are treated with dignity and respect". |
| Ashley Hamilton-Claxton, corporate governance manager at Royal London Asset Management, which owns shares in Sports Direct, said on the Today programme: "We need fundamental change at the top and that starts with the chairman." | Ashley Hamilton-Claxton, corporate governance manager at Royal London Asset Management, which owns shares in Sports Direct, said on the Today programme: "We need fundamental change at the top and that starts with the chairman." |
| She said Mr Hellawell had "not shown sufficient leadership" and making "minor changes" to its employment practices were not enough. | She said Mr Hellawell had "not shown sufficient leadership" and making "minor changes" to its employment practices were not enough. |
| Sports Direct has already commissioned a second review of working practices to monitor progress, but Ms Hamilton Claxton said this review needed to be conducted under a new chairman "otherwise we are unlikely to see change". | Sports Direct has already commissioned a second review of working practices to monitor progress, but Ms Hamilton Claxton said this review needed to be conducted under a new chairman "otherwise we are unlikely to see change". |
| Shareholder Hermes also said it would vote against the reappointment of Mr Hellawell. | Shareholder Hermes also said it would vote against the reappointment of Mr Hellawell. |
| "When we've met him he always comes across as an individual with the highest integrity [but] we believe now is the time for him to step down and be replaced by a strong, credible individual with strong experience of chairing a FTSE company," Leon Kamhi, the head of responsibility at Hermes Investment Management, told the World at One. | "When we've met him he always comes across as an individual with the highest integrity [but] we believe now is the time for him to step down and be replaced by a strong, credible individual with strong experience of chairing a FTSE company," Leon Kamhi, the head of responsibility at Hermes Investment Management, told the World at One. |
| It is understood that Mr Hellawell offered to step down over the weekend as chairman, but his offer was turned down by the board. | It is understood that Mr Hellawell offered to step down over the weekend as chairman, but his offer was turned down by the board. |
| The Institute of Directors (IoD) has also called for an overhaul of the way the firm is run. | The Institute of Directors (IoD) has also called for an overhaul of the way the firm is run. |
| "It is good news that Sports Direct is responding to public and investor pressure to reform working practices at their facilities," said Oliver Parry of the IoD. | "It is good news that Sports Direct is responding to public and investor pressure to reform working practices at their facilities," said Oliver Parry of the IoD. |
| "But this is only the first step towards restoring shareholder and employee trust in the management and board. | "But this is only the first step towards restoring shareholder and employee trust in the management and board. |
| "A radical overhaul of their corporate governance arrangements needs to be the next step," he added. | "A radical overhaul of their corporate governance arrangements needs to be the next step," he added. |