Scandal-hit Quindell recruits new chief and ousts its adviser
OUTSOURCER Quindell drew a line under an era of scandal today as the business turned to Indro Mukerjee as its new chief executive and ousted City adviser Cenkos.
Top of Mukerjee’s in-tray will be a clutch of investigations into its business and accounting practices over several years, including a criminal probe launched by the Serious Fraud Office this month.
Its 2013 and 2014 accounts are already being investigated by the Financial Conduct Authority and re stated accounts for 2014 revealed a £238 million loss earlier this month.
Quindell has also replaced nominated adviser or “nomad” Cenkos in another break with the tumultuous era of controversial founder Rob Terry.
The nomad is responsible for assessing the suitability of businesses as a listed company and advising them as well as satisfying itself that information provided to investors is “correct, complete and not misleading”.
The transparency issue was thrown into relief last year when Terry quit as chairman after taking part in an opaque share -buying arrangement , under which it originally appeared that he and two other directors had increased their holdings. It later emerged that their stakes had in effect been reduced due to a sale-and-repurchase agreement.
This was the second time he had been forced to quit a company he founded. Quindell also failed to reveal joint adviser Canaccord Genuity’s resignation to the market for nearly a month last year. Quindell chairman Richard Rose has worked with the new nomad, Peel Hunt, before. A Cenkos spokesman said: “We have worked through thick and thin for Quindell, with both current and previous management, for the last three-and-a-half years.
“We undertook to see the new board through to publication of the 2014 accounts and having achieved this we believe it is now appropriate to hand over the broking and nomad role to a new party. We have reached this decision amicably with Quindell and part on good terms.”
Mukerjee will begin in two weeks’ time. The new boss has a background in electronics and engineering firms. He said: “I’m of course aware of the challenges the company has been facing and respect the chairman, board and rest of the team for the way that they have been identifying the issues of the past.”