James Hardie chair Anne Lloyd voted off board after shareholder revolt
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The news: Chair of James Hardie Industries, Anne Lloyd, has been voted off the board of the ASX-listed building materials company as investors demonstrated their frustration over the company’s heavily criticised plan to merge with US decking firm Azek.
The numbers: Results from the company’s AGM held on Wednesday show that 67.31% of shareholders voted against Lloyd. Another two directors, Peter-John Davis and Rada Rodriguez were also voted off the board.
The context: The move to merge with US firm Azek via a $14 billion buyout has wiped $6 billion from James Hardie’s market cap. The deal would see James Hardie move its primary listing from the ASX to the US – with the Australian exchange waiving the company's obligation to seek shareholder approval.
Lloyd has been a director at James Hardie since 2018, becoming chair three years ago.
Earlier this week, Norwegian central bank Norges Bank, which manages the Government Pension Fund of Norway, said it would oppose the re-election of chair Anne Lloyd and all but one company director up for election at this week's AGM, joining a flock of irate proxy advisers and institutional investors.
"Shareholders should have the right to seek changes to the board when it does not act in their best interest," Norges, which owned 1.35% of James Hardie before the merger, said in guidance published to its website.
The source: ASX
