DJs chairman defends board

 

David JonesThe chairman of David Jones has apologised to shareholders over concerns about two board members buying shares in the company days before it released better than expected sales figures.

David Jones directors Leigh Clapham and Steven Vamos bought shares in the retailer just three days before it told the market sales in the first quarter of the current financial year grew slightly.

Some shareholders have questioned whether the transactions complied with corporate governance guidelines.

Chairman Peter Mason said the matter has been referred to the corporate watchdog, the Australian Securities and Investments Commission (ASIC).

“I unreservedly apologise to the company and all our shareholders for the concerns that have been raised on this matter,” he told the company’s annual general meeting.

“Your board is committed to the highest standards of corporate governance and therefore took the decision to raise this matter proactively with ASIC following media comment.”

Mason said the two directors were “motivated by a wish to show support for the company”.

The company has also come under shareholder pressure due to CEO Paul Zahra’s decision to stand down from the company, as soon as a replacement is found.

Mason said speculation that Zahra and the board were not working well together was untrue.

“Comments that the timing of the announcement of his intention to resign will impact his and your company’s focus on the important Christmas and January sales period underestimate Paul and his team,” he added.

Zahra said the company had never been better prepared for a Christmas trading period.

AAP

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