Amigo’s new boss resigns earlier than beginning after board dispute

Wednesday 23 September 2020 3:30 p.m.

Amigo got here underneath stress after a wave of buyer complaints threatened its collapse.

The brand new managing director of troubled threat lender Amigo Loans left the corporate at this time earlier than he even took workplace.

Glen Crawford, director and CEO-designate at this time, has left the corporate after a “distinction of opinion with nearly all of the board of administrators”.

Crawford served as the corporate’s managing director from 2016 till final 12 months and joined the corporate this month pending FCA approval to totally assume his function as managing director.

Crawford had beforehand threatened to resign if founder James Benamor joined the corporate in a administration place, as he had requested in current weeks.

Subsequent week, shareholders will vote on resolutions at Amigo’s AGM that will verify Benamor’s return as a director.

The board suggested shareholders to vote in opposition to the resolutions, which might additionally outcome within the removing of CFO Nayan Kisnadwala and board member Roger Lovering.

Nevertheless, the surprising resolution prompt that there have been some variations throughout the group for the reason that AGM date was set for September 29.

Within the discover of assembly, which was requisitioned by Richmond Group, owned by Benamor, a shareholder with 9.99% of the shares of the corporate, the board of administrators had careworn its help for Crawford.

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“Specifically, it’s important that shareholders notice that the appointed CEO, Glen Crawford, will resign instantly if the decision to nominate Mr. Benamor as a director of Amigo Holdings PLC is handed,” he stated.

“Glen Crawford and the Board of Administrators have already agreed that Glen Crawford’s resignation will robotically take impact in such circumstances.

“The Board of Administrators considers Glen Crawford the very best particular person to run the enterprise and his resignation could be significantly prejudicial to the pursuits of the enterprise and its shareholders.”

The corporate stated Gary Jennison, who joined Amigo as a director on August 10, would change into managing director as an alternative.

Jennison, who was beforehand managing director of cost processor Payzone UK and Financial institution Safe Belief, has “intensive expertise in a number of turnaround conditions,” the corporate stated.

Lender guarantor Amigo has been inundated with hundreds of complaints from shoppers who say they need to by no means have gotten a mortgage.

Amigo is the topic of a Monetary Conduct Authority (FCA) investigation into the way it assesses buyer creditworthiness, and has halted almost all lending amid the coronavirus pandemic and investigation.

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