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Hornby shareholder revolt looks set to come off the rails

The strategy currently being pursued by the board is well thought-out and is working ... the board said

The board of model trains maker Hornby Plc (LON:HRN) is steamed up by an attempt to remove executive chairman Roger Canham from the board.

Ahead of a requisitioned meeting on 16 May, at which shareholders representing 20% of the shares of the company will propose that Canham get off at the next station and give his seat up to Ian Anton, the directors said they regarded the proposals as being not in the best interests of the company.

Furthermore, and in the finest tradition of the late Mollie Sugden’s Mrs Slocombe character in the TV comedy ‘Are You Being Served?”, they are unanimous in this.

The majority of shareholders back the board

The directors have urged shareholders to vote against the resolutions, which have been put forward by ROY Nominees Limited and HSBC Global Custody Nominee (UK) Limited.

Although the proposers control around one-fifth of the shares in issue, the Hornby board reckons it has the support of shareholders controlling around 54% of the votes, so this one shareholder revolt looks like it will quickly go off the rails.

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