Shareholders at apparel brand Joules have been advised to vote against the founder’s bid to increase his stake in the business.
Founder and current chief brand officer Tom Joule is set to launch a bid this Thursday at the annual general meeting that would waive a rule allowing him to raise his personal stake in the business from 32 per cent to as much as 36 per cent.
The rule waiver would exempt Joule from having to declare the move as a full takeover, if the company were to execute a share buyback from investors or award Joule more shares as part of a bonus scheme.
In a report ahead of the meeting, independent shareholder advisory firm ISS has encouraged investors to vote against the move, adding that there are concerns for Joule’s “creeping control” over the business as its largest shareholder.
Joule’s current 32 per cent personal stake in the business is worth around £90 million, while Joules holds a market value of £278.3 million.
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