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August 6, 2002 — (WEB HOST INDUSTRY REVIEW) — London-based colocation firm Redbus Interhouse (Interhouse.Redbus.com) held a meeting on Monday for shareholders to vote on efforts by the company?s founder Cliff Stanford to remove the existing management and replace it with his own.
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As reported today by XSP Strategy, (xsp-strategy.com), an ongoing dispute between the company?s executives and main shareholders about the company?s strategy and future led to Stanford quitting the board and mounting efforts to replace the company?s directors with a team of his own.
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Stanford set up a bulletin board online, using it to discuss his feelings on how the team was failing, and how he proposed to turn around the company?s slumping fortunes. Redbus?s share prices fell from over £3 during the dot-com boom to under 10p now, and are under pressure to take control of the situation.
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The means by which to right the situation was the source of the conflict between Stanford and Porter. The board wanted to cut costs and weather the down market, while Stanford wanted to invest in sales and marketing activities to generate profits and growth.
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Despite his involvement in recruiting many of them, Stanford called for the removal of CEO Kevin Neal, FD Carl Fry and Chairman John Porter, and their replacement with entrepreneur Dan Wagner as chairman and himself as CEO.
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The shareholder vote on the matter, requested by Stanford, was held Monday in London. For each of the directors, about 44 percent of shareholders voted against their removal and about 33 percent in favor. The results mean the move was denied and the current management team will stay in place.
