Shoprite resolutions found objectionable
Legae Securities questions remuneration policy controls and independence of directors and auditors
Legae Securities wants Shoprite shareholders to vote against 10 of the 21 resolutions at the annual general meeting (AGM). The resolutions that have earned the disapproval of the black-owned and managed stockbroking firm relate to the audit firm’s independence, the independence of directors, control over unissued shares and the remuneration policy. The contested resolutions deal with issues at the heart of the King IV corporate governance code that will be launched on November 1, the day after Shoprite’s AGM. In its proxy insight into the Shoprite annual general meeting, Legae Securities said PwC had been auditing Shoprite since at least 2003 and this raised questions about its independence. "PwC is one of the big four audit firms in SA and possess the skills, experience and sufficient resources to perform the audit," but it had been auditing the company for more than 12 years and so "we recommend that Shoprite issue a new audit tender". The King IV draft is not prescriptive on the ...
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