Scottish fund giant to join protest vote at Sports Direct

Investors plan to oppose re-election of firm’s chairman Hellawell will stand down if he fails to get support

Aberdeen Standard Investments, which owns more than £100 million worth of shares in Sports Direct, has added its voice to growing opposition over the re-election of the sports retailer’s chairman Keith Hellawell.

Institutional investors have said they plan to vote against the re-election of the former West Yorkshire Police chief constable and government drugs tsar ahead of the firm’s AGM next week.

Hellawell has presided over a long list of scandals and controversies at the Mike Ashley-controlled chain, and has pledged to step down if he does not receive the support of a majority of independent shareholders at the firm’s meeting on Wednesday.

Aberdeen Standard Investments and Royal London Asset Management have now said they will oppose his reappointment.

Paul Lee, head of corporate governance at Aberdeen Standard Investments, admitted that Sports Direct “have come quite a long way since this time last year, and the level of transparency has increased”.

“But we don’t think it has moved on significantly enough, so we will be opposing Hellawell’s reappointment,” he said.

Ashley Hamilton Claxton, corporate governance manager at Royal London, said: “Sports Direct continues to show a serious disregard for shareholders’ views about the governance and management of the company.

“We have no confidence in the ability of the firm’s chairman and non-executive directors to provide effective oversight and protect the interests of minority investors.

“For this reason, we will be voting against the firm’s CEO, chairman of the board and the lead independent director.”

The strong comments come after a trio of shareholder advisory firms – Institutional Shareholder Services, Pirc and Glass Lewis – recommended that investors vote against Hellawell’s reappointment.

Aberdeen Standard Investments holds 0.5 per cent of Sports Direct shares and Royal London holds 0.19 per cent.

But Hellawell will find solace in the fact that Phoenix Asset Management Partners and Aurora Investment Trust intend to vote for his reappointment.

Tristan Chapple, director at the fund, said: “The Sports Direct management team is doing a good job of running the business.

“As 3.6 per cent owners of Sports Direct we will be voting in favour of Keith Hellawell’s re-election.”

businessdesk@scotsman.com