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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/sep/07/sports-direct-annual-general-meeting-showdown-mike-ashley-business-live
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| Version 13 | Version 14 |
|---|---|
| Mike Ashley: If I keep failing, I should leave Sports Direct - live updates | Mike Ashley: If I keep failing, I should leave Sports Direct - live updates |
| (35 minutes later) | |
| 4.20pm BST | |
| 16:20 | |
| City firm Legal & General aren’t convinced by Ashley and Hellawell’s arguments. | |
| They want the chairman to quit now, having lost the support of independent investors today. | |
| L&G calls on Sports Direct chair Hellawell to step down immediately after more than half of indie shareholders vote against his re-election | |
| L&G: " it is clear the Board needs to enact significant change in order to earn back shareholder trust" | |
| 4.07pm BST | |
| 16:07 | |
| Q: Final question, how do you feel about Iain Wright MP claiming that you and Sir Philip Green are ‘two peas in a pod’? | |
| No, I’m far better looking than him, Ashley shoots back, before heading back into the HQ. | |
| 4.06pm BST | |
| 16:06 | |
| Back to Mike Ashley.... | |
| Q: Why are you so determined to keep Keith Hellawell as chairman when the majority of independent shareholders want him to leave? | |
| Ashley says Keith has experience of working with him, which will help with the turnaround plan at Sports Direct. | |
| Keith knows my strengths, and my weaknesses, and we’re beginning to learn some of the company’s weaknesses, together. | |
| Ashley’s voice almost breaks at this point: | |
| So, we’re going to fix it. Please give us 12 months to fix it. What difference is 12 months? | |
| We’ve done some good work in 90 days - lets do some fantastic work in 12 months. | |
| If we fail, Ashley concludes, I’ll be stood here in a year’s time, saying “I’m sorry, I got it wrong again. When is this ever going to end?” | |
| 3.59pm BST | |
| 15:59 | |
| City investors do recognise my integrity and my experience, Hellawell insists. | |
| But if they don’t have a change of heart over the next 12 months, I will leave. | |
| Q: But surely your position is untenable, after today’s protest vote. | |
| Hellawell denies it: | |
| My position is not untenable - the majority of shareholders in this company support me. | |
| I am here to prove to the majority of independent shareholders who don’t support me that I making a valuable contribution to this company, and over the next 12 months I’ll be judged on that contribution. | |
| 3.55pm BST | |
| 15:55 | |
| Chairman Keith Hellawell is taking questions now. | |
| Q: Were you surprised by the scale of the rebellion against you today? | |
| Hellawell says it’s disappointing - he needs to prove that changes have been made in a year’s time. | |
| Q: Why didn’t you realise there were problems at Sports Direct two years ago when a women gave birth in the toilets? | |
| Hellawell claims this incident has been misreported. It’s an “extreme example” and doesn’t represent Sports Direct as a company. | |
| Q: Your shareholders want you to go - why won’t you? | |
| That’s not true, Hellawell replies - the majority shareholder (Ashley) still backs me. | |
| Q: But your shareholders don’t believe you are competent. | |
| Hellawell says he will prove his competence over the next 12 months. He also claims that it’s “not true” that there have been problems for years and years and years | |
| Q: They’ve been widely reported on the BBC, on ITV, SKy News, on the Guardian - if you’d read a newspaper or listened to a broadcast, you’d have been aware of them. | |
| We are aware of the issues,and we are tackling them, Hellawell says. | |
| 3.45pm BST | 3.45pm BST |
| 15:45 | 15:45 |
| Ashley: If I keep failing, I should leave | Ashley: If I keep failing, I should leave |
| Mike Ashley then tells reporters that he should step down from Sports Direct if he can’t turn the company around. | Mike Ashley then tells reporters that he should step down from Sports Direct if he can’t turn the company around. |
| Q: Have you been hurt by the personal criticisms from City institutions, Mr Ashley, saying you aren’t the right man to lead the company? | Q: Have you been hurt by the personal criticisms from City institutions, Mr Ashley, saying you aren’t the right man to lead the company? |
| Ashley says he understand the frustrations, but they do hurt him personally. | Ashley says he understand the frustrations, but they do hurt him personally. |
| But he still has to believe he’s the right man to lead Sports Direct forwards. | But he still has to believe he’s the right man to lead Sports Direct forwards. |
| I’m a man who gets some things very right, and other things very wrong. | I’m a man who gets some things very right, and other things very wrong. |
| I got the staff bonus very right for a few years. Hundreds of millions [of pounds]. Fantastic. | I got the staff bonus very right for a few years. Hundreds of millions [of pounds]. Fantastic. |
| I seem to have got the warehouse completely wrong. Totally unacceptable. | I seem to have got the warehouse completely wrong. Totally unacceptable. |
| We’ve got to keep the positives and focus on the negatives. | We’ve got to keep the positives and focus on the negatives. |
| In the end, if I keep failing and keep failing and keep failing, it’ll be best for everybody if I go. But give me some time to see if I can fix the problems first, please. | In the end, if I keep failing and keep failing and keep failing, it’ll be best for everybody if I go. But give me some time to see if I can fix the problems first, please. |
| Updated | Updated |
| at 3.47pm BST | at 3.47pm BST |
| 3.39pm BST | 3.39pm BST |
| 15:39 | 15:39 |
| Ashley faces media after investor revolt | Ashley faces media after investor revolt |
| Mike Ashley and Keith Hellawell are facing the media now, after 53% of shareholders (excluding Ashley) dramatically voted against Hellawell’s re-election as chairman today. | Mike Ashley and Keith Hellawell are facing the media now, after 53% of shareholders (excluding Ashley) dramatically voted against Hellawell’s re-election as chairman today. |
| Ashley says he welcomes Hellawell’s support and knowledge to “make a difference” | Ashley says he welcomes Hellawell’s support and knowledge to “make a difference” |
| Q: But if you were serious about change, Mr Ashley, you’d accept your chairman’s resignation (tendered last week). | Q: But if you were serious about change, Mr Ashley, you’d accept your chairman’s resignation (tendered last week). |
| I am serious about change, Ashley insists. Together, Keith and I will make some huge changes. | I am serious about change, Ashley insists. Together, Keith and I will make some huge changes. |
| Q: How can you have a chairman who doesn’t have the confidence of your independent investors? | Q: How can you have a chairman who doesn’t have the confidence of your independent investors? |
| Ashley says he believes Hellawell will regain the confidence of shareholders over the next 12 months. We should be given time to work on the businesses’ shortcomings. | Ashley says he believes Hellawell will regain the confidence of shareholders over the next 12 months. We should be given time to work on the businesses’ shortcomings. |
| Q: Aren’t you just sticking two fingers up to the City, politicians and the union? | Q: Aren’t you just sticking two fingers up to the City, politicians and the union? |
| That would make no sense, Ashley says. We want to make a genuine difference. | That would make no sense, Ashley says. We want to make a genuine difference. |
| 3.27pm BST | 3.27pm BST |
| 15:27 | 15:27 |
| Sports Direct independent shareholders refuse to support chairman Hellawell | Sports Direct independent shareholders refuse to support chairman Hellawell |
| BREAKING: A majority of Sports Direct’s independent shareholders have voted against Keith Hellawell’s reappointment as chairman today. | BREAKING: A majority of Sports Direct’s independent shareholders have voted against Keith Hellawell’s reappointment as chairman today. |
| Figures just released show that 53% of shares cast by investors, excluding Mike Ashley, opposed Hellawell’s re-election. Including abstentions, and a whopping 63% of shareholders refused to back him! | Figures just released show that 53% of shares cast by investors, excluding Mike Ashley, opposed Hellawell’s re-election. Including abstentions, and a whopping 63% of shareholders refused to back him! |
| That’s a massive slapdown from the City. | That’s a massive slapdown from the City. |
| There was also significant protests against other non-executives, as this table shows: | There was also significant protests against other non-executives, as this table shows: |
| However, Ashley cast his shares (55% of the company) in favour of Hellawell. | However, Ashley cast his shares (55% of the company) in favour of Hellawell. |
| That means the chairman will survive, and a new vote will be called in 90 days (where Ashley’s stake will again be decisive). | That means the chairman will survive, and a new vote will be called in 90 days (where Ashley’s stake will again be decisive). |
| The company says that it is “disappointed to note that the resolution to re-elect the Chairman was not approved by a majority of the Company’s independent shareholders”. | The company says that it is “disappointed to note that the resolution to re-elect the Chairman was not approved by a majority of the Company’s independent shareholders”. |
| Keith Hellawell has repeated that he will resign in a year’s time, if shareholders oppose him again. | Keith Hellawell has repeated that he will resign in a year’s time, if shareholders oppose him again. |
| “I take this clear message from our independent shareholders seriously, and I will do my best to address their concerns and earn their confidence over the next year. | “I take this clear message from our independent shareholders seriously, and I will do my best to address their concerns and earn their confidence over the next year. |
| I have confirmed today that should I not receive the support of a majority of our independent shareholders at next year’s AGM, I will step down at that time with immediate effect.” | I have confirmed today that should I not receive the support of a majority of our independent shareholders at next year’s AGM, I will step down at that time with immediate effect.” |
| 3.12pm BST | 3.12pm BST |
| 15:12 | 15:12 |
| Here’s a taste of our latest news story about Ashley’s clash with Unite: | Here’s a taste of our latest news story about Ashley’s clash with Unite: |
| Mike Ashley, Sports Direct’s founder and majority shareholder, has blamed the Unite union for the company’s problems in an angry outburst at the retailer’s annual shareholder meeting. | Mike Ashley, Sports Direct’s founder and majority shareholder, has blamed the Unite union for the company’s problems in an angry outburst at the retailer’s annual shareholder meeting. |
| In a packed meeting of more than 120 people at the head office in Shirebrook, Derbyshire, Ashley was challenged by the union’s assistant general secretary, Steve Turner, over a pledge to offer shop-floor staff 12-hour contracts instead of zero hours. | In a packed meeting of more than 120 people at the head office in Shirebrook, Derbyshire, Ashley was challenged by the union’s assistant general secretary, Steve Turner, over a pledge to offer shop-floor staff 12-hour contracts instead of zero hours. |
| Turner said he would not be surprised if few workers took up the offer as most were working much longer hours every week. | Turner said he would not be surprised if few workers took up the offer as most were working much longer hours every week. |
| Ashley told Turner that the 12-hour promise did not mean Sports Direct would reduce hours for those who worked longer. | Ashley told Turner that the 12-hour promise did not mean Sports Direct would reduce hours for those who worked longer. |
| He said: “This is probably your fault we are in this situation because we can’t talk to you in an open manner. | He said: “This is probably your fault we are in this situation because we can’t talk to you in an open manner. |
| “I’ve made a commitment to make a difference and I’m trying so don’t pull me down. Don’t do the whole showboating thing. It will make me turn away and the only people who suffer are people that work at Sports Direct. | “I’ve made a commitment to make a difference and I’m trying so don’t pull me down. Don’t do the whole showboating thing. It will make me turn away and the only people who suffer are people that work at Sports Direct. |
| More here: | More here: |
| 3.00pm BST | 3.00pm BST |
| 15:00 | 15:00 |
| Here’s a better photo of the protests outside Sports Direct’s HQ: | Here’s a better photo of the protests outside Sports Direct’s HQ: |
| While Mike Ashley shows people around Shirebrook, activists continue to protest #sportsdirectshame #sportsdirectagm pic.twitter.com/BTCBUHNz07 | While Mike Ashley shows people around Shirebrook, activists continue to protest #sportsdirectshame #sportsdirectagm pic.twitter.com/BTCBUHNz07 |
| 2.59pm BST | 2.59pm BST |
| 14:59 | 14:59 |
| Mike Ashley appears to have regained his good spirits: | Mike Ashley appears to have regained his good spirits: |
| Hellawell just left the room to deal with something. Ashley quips "probably had his hand in the till".. Er.. | Hellawell just left the room to deal with something. Ashley quips "probably had his hand in the till".. Er.. |
| Maybe he enjoyed showing his warehouse off to the journalists today. | Maybe he enjoyed showing his warehouse off to the journalists today. |
| Updated | Updated |
| at 2.59pm BST | at 2.59pm BST |
| 2.54pm BST | 2.54pm BST |
| 14:54 | 14:54 |
| The Unite union are holding a demonstration at Shirebrook today. | The Unite union are holding a demonstration at Shirebrook today. |
| They’re urging Ashley to offer permanent contracts to the thousands of agency workers who keep his warehouse running. | They’re urging Ashley to offer permanent contracts to the thousands of agency workers who keep his warehouse running. |
| You can see them in the background, here: | You can see them in the background, here: |
| Unite have played a major role in exposing the problems at Sports Direct. | Unite have played a major role in exposing the problems at Sports Direct. |
| Back in June, its officials told MPs about the poor conditions at Shirebrook, such as 110 ambulance callouts to the warehouse - including five for birth and miscarriage-related reasons. | Back in June, its officials told MPs about the poor conditions at Shirebrook, such as 110 ambulance callouts to the warehouse - including five for birth and miscarriage-related reasons. |