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[Danone / Governance crisis] Phitrust with four major investors ask Danone’s directors to expose their vision at the AGM on April 29

Phitrust, together with Mirova, Ircantec, CAVP (Caisse d’assurance vieillesse des pharmaciens), and OFI AM, which together hold more than 0.5% of the capital, have successfully asked the Board of Directors of Danone to add an item to the agenda of the General Assembly of April 29, in accordance with the current regulations.

The objective: to allow each director to express himself individually on his strategic vision for the Danone group by developing in particular his personal contribution on environmental issues and his approach to the organization of a well balanced governance.

Arguments for the request for registration at the AGM of April 29, 2021

The recent governance crisis at Danone has highlighted both formal dysfunctions and fundamental disagreements within the company’s Board of Directors.

> Formally, the deliberations of the Board of Directors were leaked and published, in violation of the rules of law (Art. L225-37 of the French Commercial Code), increasing the pressure on all the company’s stakeholders.

> On the substantive issues of this crisis, the Board of Directors, by voting for the departure of Mr. Emmanuel Faber, then Chairman and CEO, showed its opposition to the manner in which the strategy was being conducted by the Chairman and CEO, but it would also appear to be an opposition to the strategy itself, even though the Board is responsible for presiding over the direction of this strategy and in fact shares responsibility for it.

> For this reason, it is proposed to the shareholders to include in the agenda of this General Meeting, in accordance with the legal provisions in force, an item allowing each Director to express himself individually on his strategic vision for the Danone group by developing in particular his personal contribution on environmental issues and his approach to the organization of a balanced governance.

In accordance with the option offered by Article L.225-105 of the French Commercial Code, we request that the following item be included in the agenda of the Combined General Meeting of April 29, 2021 of Danone:

“Each director whose term of office is in progress or who is standing for a vote by the shareholders at this General Meeting to renew his or her term of office is requested to present to the shareholders:

– his or her strategic vision for the Group, and in particular his or her opinion on the Local First plan and its developments in economic and social terms ;

– its position on maintaining its status as a company with a mission;

– its approach to environmental issues and the means to be implemented so that the group can achieve the objectives of the 2015 Paris Agreement;

– its views on the organization of the company’s governance and, more specifically, on the need to keep management powers separate. ” 

Link to Les Echos report.- Laurence Boisseau https://www.lesechos.fr/industrie-services/conso-distribution/danone-des-actionnaires-demandent-aux-administrateurs-de-clarifier-leur-vision-du-groupe-1305335

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