Greencore's plan to keep Bernie Cahill on as chairman of the company for the acquisition of Hazlewood in the UK ran into trouble at its AGM this afternoon when Dermot Desmond decided enough was enough for the 70-year-old.
The board put forward a proposal that the Articles of Association which require directors to retire at 70 should be changed so that Cahill could stay on.
But financier Dermot Desmond threw his 15% shareholding against the move, which required a 75% majority, tipping the scales against the long serving chairman with only 50% of shares voted in the poll.
Earlier Greencore warned that a reduction in its sugar quota and pricing pressures would impact sugar profits this year.
Mr Cahill told the AGM that the UK bread market had not improved from the difficulties of late last year with rises in distribution costs also adversely affecting margins. However, the outlook for malt later this year and early next year has improved.
On the Hazlewood Foods buy, Mr Cahill said the company's management structures and accountability has been re-organised, the company's head office in Derby would be closed down in March and the loss-making paper operations of FH Lee would be sold off.
