Card Factory (LSE:CARD) has said new directors will not be appointed despite concerns over diversity within its board.
Several shareholders voted against the reappointment of chair Paul Moody in its latest annual general meeting, Card Factory said on Monday.
Though all resolutions were passed, Card Factory noted 20% of votes cast were against reappointing Moody during the meeting in June.
“The board understands, from prior shareholder feedback, that the diversity of the board may result in votes against the chair's reappointment,” Card Factory said on Monday.
Women made up 33% of Card Factory’s board currently, it added, below the 40% recommended under listing rules.
Card Factory said its 12 largest shareholders had been consulted since the meeting, with four having supported Moody’s reappointment but “no engagement or explanation” being received from those against.
“The board has recently re-assessed the skills and experience of its members and consider this to be appropriate for the company's operations and strategic objectives,” Card Factory added.
“The board recognise the diversity of its membership, across a range of criteria and does not consider it to be in the interests of shareholders to recruit an additional director solely to achieve the [...] recommendation.”