Directors of PGC plan to bow out

Sam Maling. Photo / Greg Bowker

Chairman of freshly recapitalised Pyne Gould Corporation Sam Maling is to step down shortly, as will three other directors, Richard Elworthy, Warwick Steel and Stephen Montgomery.

Maling told the company's annual meeting yesterday that in an overhaul of the group's governance structure, separate boards will be established for subsidiaries Perpetual Asset Management and Marac with a rejigged PGC board sitting over the top.

Elworthy, Steel and Montgomery would "not be available for appointment" and would be standing down.

It was intended to have the new boards in place by the end of November and have the appointments confirmed at a special meeting.

"I, too, will be standing down once these new appointments are confirmed," Maling said.

He said PGC's board took responsibility for "recent events" including a $54 million dollar full-year loss stemming from the woeful performances of finance subsidiary Marac and 20 per cent-owned PGG Wrightson's recent problems.

Maling and his departing colleagues might have "moved sooner" if not for their determination to fix Marac's problems, which have largely been related to property loans.

"We have attended to the fix, and in the process set the business on track again with what we believe to be an exciting strategy for the future. So now is the time to tidy up the board."

He said the board, including Bruce Irvine, Bryan Mogridge and George Kerr, who are staying on, had been "absolutely united" on the steps taken to recapitalise the company and its future strategy to become a listed banking and asset management business.

Maling said the board acknowledged the $270 million capital raising, specifically the extremely dilutive rights issue, had been "particularly bruising" for many shareholders.

After the capital raising there was now "a large number of institutions" on the share register, "but pleasingly there remain a significant number of family, ex-staff and clients in the top 50 shareholders".