Faroe: DNO’s request for new directors would be ‘soundly defeated’
Oil and gas company Faroe Petroleum has stated that the request by DNO to appoint two of its directors to the Faroe board would be shot down even if the general meeting was held.
As reported on Monday, DNO withdrew its request for a general meeting to appoint its own nominated directors to the Faroe board.
DNO had requested a meeting of Faroe shareholders earlier this month to consider appointing DNO executive chairman Bijan Mossavar-Rahmani and DNO managing director Bjørn Dale to the Faroe board of directors.
Faroe then issued a response regarding the request expressing concern with DNO intentions and advising against the meeting and DNO representation on the board due to a potential conflict of interest.
According to the company, it is inappropriate to have DNO directors on Faroe’s board as DNO is its competitor on the Norwegian Continental Shelf.
DNO then withdrew its request for the meeting citing Faroe’s “hostile public response” and “repeated peremptory and disdainful attitude to such representation for, and therefore greater engagement with, its largest shareholder.”
In a comment on DNO withdrawing its request for directors appointment, Faroe on Tuesday said was pleased with DNO’s withdrawal of the request since it would have been “costly and time-consuming.”
Faroe also said that the proposition for the appointments would be ultimately “soundly defeated” based on the board’s discussions with its major institutional shareholders.
Faroe on Tuesday said:”[…]the board reiterates its views as expressed in its announcement of August 16, notably that the appointment of DNO nominated directors would be inconsistent with the principle of an independent board and normal practice and precedent for companies operating on the NCS,” the company added.
Faroe noted that the CEO and senior independent director of the company had both written separately to DNO earlier this year to offer a meeting but no response was received to either communication.
“The company welcomes a constructive dialogue with all shareholders and will continue to seek active engagement with DNO as it does with all its major shareholders,” Faroe said.