// A small group of John Lewis Partnership trustees could block the plans to sell a minority stake in the 100% employee-owned model
// The proposals will first need to be agreed by its trustees before its referred to its council for a vote
A small group of John Lewis Partnership trustees could block the plans to dilute the 100% employee-owned model.
Chairwoman Dame Sharon White has been exploring the option to sell a minority stake in the business to raise between £1bn and £2bn of new investment.
Selling a stake in the Partnership would require a change to its constitution which requires agreement by the Partnership’s trust.
Its trustees have to be consulted on the proposals and be satisfied on any changes before it is referred to the partnership’s council for the vote.
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White, who is the chief trustee, is joined by non-executive deputy chairwoman Rita Clifton and three other directors elected by the partnership council that have been nicknamed as “three wise heads” due to their longer experience with the retail giant.
“The chairwoman would inform the trustees of [their duties] at an early stage and they would then give their guidance,” a senior source told The Times.
“If the trustees really took against this and said the chairwoman was compromising the objective of the trust by selling an equity stake to a third party then they can challenge that.”
The trustees have the ability to call for a council meeting at any given point to discuss their concerns.
If members thought White was compromising the trust a process could be triggered for her dismissal.
On Wednesday, White took to LinkedIn to reassure customers after facing backlash over the possible plans to dilute John Lewis’ partnership model.
She stressed, that as Chairman, she has the responsibility and the privilege of ensuring “everything we do is in the best interest of the Partnership.”
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