A top activist fund has called a meeting to oust the chairman of the London Stock Exchange PLC (LON:LSE) accusing him of forcing out chief executive Xavier Rolet.
Sir Chris Hohn, who heads the Children Investment fund (TCI), said the LSE had failed to provide any basis for Rolet’s removal.
READ: LSE insists it followed proper procedure for CEO succession
Rolet announced last month he would be stepping down as chief executvie, but Hohn claims confidentialtiy agreements are denying him the chance to explain why he is leaving.
At the extraordinary general meeting (EGM) TCI will propose a resolution to remove LSE chairman Donald Brydon and also to end the search for a new chief executive, paving the way for Rolet to return if he wishes.
Hohn said the LSE was denying shareholders the opportunity to review the decision on Rolet, which amounted to poor corporate governance.
READ: LSE boss Xavier Rolet steps down as it reports third quarter revenue and profit growth
The LSE has already published one statement insisting it followed proper procedure with regard to Rolet’s departure.
Rolet joined the LSE in 2009. Since then LSE shares have soared, reaching an all-time high of £40 earlier this year.
TCI owns more than 5% of the LSE, a stake sufficient for it to call the meeting.The LSE has 21 days to call it and a further 28 days to confirm the date.
Hohn told the FT he had spoken to all major shareholders and was confident that the majority would vote for the proposals.