FirstGroup defeats challenge from investors

FirstGroup has successfully defeated plans by investor group Coast Capital to replace its board of directors and exit the UK rail business.

At an Extraordinary General Meeting on June 25, investors voted by more than four to one against Coast’s resolutions, although there were considerable variations within the votes for motions to remove directors.

Following the vote, Chairman Wolfhart Hauser announced plans to stand down at FirstGroup’s annual general meeting on July 25, with senior independent director David Robbie taking over as interim chairman.

Hauser said: “Having renewed the Board through the appointment of independent directors with a diverse range of skills and expertise focused on the future of mobility services, and overseen the appointment of Matthew Gregory as chief executive and Ryan Mangold as chief financial officer to drive delivery of the strategy, it is now time for me to move on.

“I am confident that the clear path forward laid out for the Group in our strategy announcement on May 30 is the best way to deliver enhanced sustainable value to all shareholders, and that the Board and management team will execute these plans at pace.”