A GROUP of influential investors has urged Sports Direct to overhaul the way and to launch an independent review into its corporate governance practices.
The Investor Forum, which has £14.5trn of investments, has told the embattled sports clothing retailer to launch an independent review of the company’s entire corporate governance framework.
This would go substantially beyond the currently proposed board effectiveness evaluation, and the terms of reference should address previously raised investor concerns including:
– corporate governance and Board oversight and effectiveness,
– related party transactions and potential conflicts of interest,
– employment practices,
– acquisition strategy and associated due diligence,
– oversight of key supplier relationships and the management of the store portfolio.
Andy Griffiths, executive director of the Investor Forum said: “It is highly unusual for the Investor Forum to consider it necessary to make public their concerns and recommendations in this way. In prior situations we have always managed to work privately with companies to create effective long term solutions.