SIGnet Join Donate Contact Login
ShareSoc — UK Individual Shareholders Society
Popular AGM voting guidance Investor Academy Company research Woodford campaign SIGnet groups
SIGnetJoinDonateContactLogin

Real Good Food – an example of poor AIM corporate governance

The ShareSoc blog provides news and informal commentary from directors, members and other contributors. Entries reflect the personal views of the authors, which do not necessarily reflect ShareSoc’s formal position. Contributors may hold shares in the companies mentioned. Nothing in this blog should be viewed as financial advice. You may submit comments on blog posts, but ShareSoc reserves the right to remove or edit inappropriate or defamatory submissions.

Chris Spencer-Phillips, a ShareSoc Director, attended the AGM of Real Good Food last week. This is typical of many AIM companies in that it has very poor corporate governance. They have an Executive Chairman, who refused to answer the questions from a shareholder at the meeting. In addition they have pay which is wildly out of line with the profitability and general size of the company. That includes £798k (including consultancy fees) to the Chairman, plus share options; and one of the Non-Executive Directors gets £135k which for an AIM company probably takes some beating.

As we said to the FRC at a meeting with them this week, corporate governance in many AIM companies is a major problem and unfortunately the LSE don’t seem to wish to tackle this problem. All shareholders can do in the meantime is avoid such companies.

You can read Chris’s full report on the AGM here.

Post Date: September 18, 2013

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Become a free Associate ShareSoc member

Enter your email to sign up as a free Associate ShareSoc member and receive our emails. It takes a few seconds — and on the next page you'll have the option to customise your membership.